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Bloomberg
Shiseido Co agreed to buy skincare brand Drunk Elephant for $845 million as the Japanese beauty company seeks to appeal to younger consumers in the US.
The deal for Drunk Elephant Holdings LLC won’t have a significant impact on full-year earnings, Shiseido said in a statement. It will be financed with a combination of cash and credit, and is expected to close by the end of the year.
Shiseido is acquiring a brand beloved by hip millennial and Generation Z consumers for its nontoxic ingredients and Instagram-friendly packaging, as the Japanese company attempts to bolster its presence among younger shoppers.
The world’s largest cosmetics companies have been rapidly acquiring upstart brands in recent years as they search for the next big hit. Last year, Shiseido redesigned its eponymous makeup line to appeal to younger generations.