MUSCAT GROUP is set to acquire the cosmetics brand Kanarabo to enhance its portfolio targeting millennials and Generation Z, with an expected total investment of up to ¥1.216 billion.

Target Company Overview

MUSCAT GROUP, a prominent player in the beauty products industry, has announced its intention to acquire the cosmetics brand Kanarabo, based in Shibuya, Tokyo. Kanarabo specializes in targeting millennials and Generation Z with its innovative product lines, including popular brands such as Fujiko and b idol. The acquisition is expected to enhance MUSCAT GROUP's brand portfolio, consequently reinforcing its revenue base and providing new growth opportunities. For the fiscal year ending September 2024, Kanarabo reported revenues of ¥3.07 billion, an operating profit of ¥196 million, and net assets amounting to ¥494 million.

The acquisition will be executed in two phases. Initially, MUSCAT GROUP plans to acquire a 68% stake in Kanarabo for ¥758 million by October 31, 2025. The remaining shares are slated for acquisition by the end of May 2027, with the total transaction value potentially reaching up to ¥1.216 billion.

Industry Overview in Japan

The cosmetics industry in Japan is a dynamic market characterized by a continuous demand for innovative products driven by changing consumer preferences. With a growing emphasis on sustainability and natural ingredients, brands must adapt to cater to the increasingly discerning