Bain Said to Make Finetoday Bid, Eyes Asia Beauty Market
Bain Capital has made a binding offer for Japanese personal-care group Finetoday Holdings Co., according to people familiar with the matter, as the global buyout firm seeks to capitalise on the business’s footprint in key Asian markets including China.Bain’s rivals KKR & Co. and Blackstone Inc. were in the bidding race but have withdrawn, the people said, asking not to be identified discussing private matters.Negotiations are ongoing and may not result in a deal, they said.A spokesperson for Finetoday declined to comment. Bain, KKR and Blackstone also declined to comment.Finetoday’s haircare and skincare portfolio includes popular Japanese drugstore brands like Tsubaki shampoo. It was established in 2021 after a sale of Shiseido Co.’s personal-care business to CVC Capital Partners Plc, in a deal worth about $1.5 billion. A CVC-backed entity bought 20 percent stake in the company from Shiseido in 2024 for an undisclosed amount.Finetoday operates in 11 Asia markets, including South Korea and Singapore, with China its second-largest after Japan, according to its prospectus for an initial public offering.Even as strong mainland demand for beauty products has driven growth for overseas brands, they’re now contending with consumer sentiment amid an economic slowdown and Chinese shoppers’ increasing preference for homegrown labels over pricier foreign rivals. Rising political tensions between Beijing and Tokyo could also further weigh on Japanese retailers’ appeal in China.Finetoday considered selling a controlling stake after it canceled plans for an IPO for a second time, Bloomberg News reported in November. The failure came after investors demanded a valuation that didn’t meet the company’s expectations, despite Finetoday slashing its valuation to ¥169 billion ($1.07 billion). The business had sought ¥219 billion in its first listing attempt.Japan saw a record year for deals in 2025, with transaction volume approaching $350 billion near the end of December. The boom was driven by corporate governance reforms aimed at improving shareholder returns, with conglomerates selling non-core assets and private equity firms hungry to deploy capital.Bain, KKR and Blackstone are among the most active private equity buyers in the market. Last year, Bain Capital announced deals worth more than $10 billion in Japan, including acquiring a Japanese supermarket company from 7-Eleven operator Seven & i Holdings Co.By Pei Li, Lisa Du, Yasutaka Tamura, and Shirley ZhaoLearn more:In Beauty, Private Equity Is Hot AgainAs strategic firms slow down their shopping sprees and venture capital dollars dry up, PE firms’ reputation for asset stripping is a thing of the past. Founders are now often hoping for private equity buyouts, but want to be sure there can be a true partnership.
