NEW YORK, April 13, 2015 /PRNewswire/ -- Positioning themselves as a major player in the European cosmetic ingredient business market, Sumitomo Corporation and Summit Pharmaceuticals International Corporation (collectively "Sumitomo Group") announced the acquisition of a cosmetic ingredient distribution business from Kyowa Hakko Europe GmbH, a European subsidiary of Kyowa Hakko Bio Co., Ltd. The business transaction will be conducted through Summit Pharmaceuticals Europe Limited, a subsidiary of Sumitomo Corporation that markets pharmaceutical intermediates and raw materials in Europe.
The Sumitomo Group will purchase the right to market cosmetic ingredients including vitamins and moisturizing agents for hair and skin care products with sales business conducted primarily in Germany as well as other European countries, and the Middle East. Main clients will include major and national cosmetic manufacturers in addition to distributors.
The Sumitomo Group first started its cosmetic ingredients business by exporting ingredients produced in Japan. In 2010, the Group expanded their business in the cosmetic and personal care market by acquiring 100% ownership of top U.S. cosmetic ingredient distribution company, Presperse Corporation. The company further extended their global reach in 2013 with their investment in Cosmotec International Especialidades Cosmeticas Ltda, a leading major supplier of cosmetic ingredients in Brazil.
"I am delighted to sign an agreement to acquire a cosmetic ingredient distribution business from Kyowa Hakko Europe GmbH", commented Mr. Kenichi Nakamura, General Manager of Medical Science Department, Sumitomo Corporation. "I am confident that we can grow the business globally with Presperse and Cosmotec by gaining the excellent customer base through this deal and by supplying unique ingredients to the market in the future. I am hoping to grow the business together with the talented employees of Kyowa Hakko Europe who will join us."
With this acquisition, the Sumitomo Group will make full entry into the European market, which accounts for approximately 30% of the global cosmetics ingredients market. The Group will work closely with Presperse and Cosmotec to leverage new global sourcing and distribution capabilities with the goal of expanding their business throughout Europe and further developing the cosmetic and personal care ingredient market. By securing a business foundation in Europe, the Group aims to obtain sales channels to reach European cosmetics manufacturers and offer strengthened services to European plants of U.S cosmetics manufacturers.
The cosmetics market, including skin care and hair care products, boasts a size of around $460 billion dollars (retail) worldwide and is expected to continue growing rapidly at the rate of four or five percent a year owing to the strong performance in large markets which include Europe, the United States and Japan and newly emerging Brazil as well as countries in Southeast Asia. By establishing a business foundation in Europe in addition to the United States, Brazil, Japan and China, the Sumitomo Group will be equipped to serve all major markets in the world. Having already accomplished its initial sales target of 100 million dollars, the Group plans to further excel and aims to generate annual sales of 200 million dollars in three years.
Sumitomo Corporation is a leading global trading company, with 116 locations in 65 countries and 24 locations in Japan. The entire Sumitomo Corporation Group consists of nearly 800 companies and more than 70,000 personnel. The Sumitomo Corporation business is continuously expanding into a diverse range of products and services. Its core business units are Metal Products; Transportation &Construction Systems; Environment & Infrastructure; Media, Network, Lifestyle Related Goods & Services; and Mineral Resources, Energy, Chemical & Electronics.
SOURCE Sumitomo Corporation