Sumitomo Corp. announced it will acquire the cosmetic ingredients business of Kyowa Hakko Europe GmbH, a European subsidiary of Kyowa Hakko Bio Co., Ltd., reportedly in a move to advance into the cosmetic ingredients business in Europe.
The acquisition will be conducted through Summit Pharmaceuticals Europe Ltd., a subsidiary of Sumitomo that markets pharmaceutical intermediates and raw materials in Europe. The cosmetic business to be acquired serves mainly Germany as well as other parts of Europe, the Middle and Near East, and its neighboring regions.
Sumitomo will obtain the right to market cosmetic ingredients including vitamins and moisturizing agents for hair care and skin care products. Since 2010, the group has steadily expanded the scope of its business by investing in Presperse Corp. and Cosmotec International Especialidades Cosmeticas Ltda.—leading cosmetic ingredients suppliers in the United States and Brazil.
By acquiring the business, Sumitomo will make full entry into the European market, which accounts for approximately 30% of the global cosmetics ingredients market, aiming for synergistic effects with Presperse and Cosmotec. According to Sumitomo, the cosmetics market, including skin care and hair care products, boasts a size of ~460 billion (retail basis) worldwide, and is the second most promising market after pharmaceuticals market.