CVC Capital Partners is moving forward with the potential sale of FineToday Holdings, a Japanese personal-care brand renowned for its Tsubaki shampoo line. This decision comes after the firm decided to forgo plans for a public listing in Tokyo, as confirmed by multiple insiders.
FineToday has designated China as its second-largest market and postponed its initial public offering (IPO) on the Tokyo Stock Exchange last October, citing challenging market conditions.
Originally, the company anticipated a market capitalization of around 169 billion yen ($1.08 billion) from this IPO. However, its earlier goal was approximately 219 billion yen for a planned public offering in 2024.
Sources indicated that both valuation targets were below CVC’s internal benchmarks.
Currently, CVC is aiming for a valuation exceeding $2 billion, roughly 14–15 times the earnings before interest, taxes, depreciation, and amortization (EBITDA) for FineToday.
Interest in FineToday has emerged from notable global buyout firms, and at least one Chinese strategic investor is reportedly interested. However, specific names of potential buyers have not been disclosed.
Due to confidentiality, the sources have requested anonymity.
Both CVC and FineToday have chosen not to provide comments at this time.
This unfolding situation coincides with heightened tensions between Japan and China.
FineToday’s recent preliminary offering document highlights challenges faced in China and Hong Kong, where sales suffered due to backlash against Japanese brands following the release of treated water from the Fukushima nuclear plant in 2023. The company also signaled ongoing vulnerability to potential geopolitical conflicts.
FineToday was established in 2021 when Shiseido Co. divested its personal-care division to CVC for 160 billion yen.
The Tokyo-based firm specializes in the manufacturing and marketing of haircare, skincare, and deodorant products under well-known brands like Tsubaki, Fino, Senka, Uno, Ag Deo24, and Kuyura, as indicated on its official website and IPO documentation.
Approximately half of FineToday’s revenues originate from international markets, with China playing a crucial role. Data for the six-month period ending June 30, 2025, revealed that 35.9 percent of the revenue was generated from China and Hong Kong, while Japan accounted for 44.3 percent, according to the filing.
In the financial year of 2024, FineToday reported a revenue of 107.3 billion yen ($688.66 million) and 56.6 billion yen in the first half of 2025, with an adjusted EBITDA margin showing improvement to 21.0 percent from 15.5 percent a year earlier, as per the filing.
