Yesterday, according to WWD, the much-anticipated deal between Japanese beauty giant Shiseido and skincare brand OSEA has officially fallen through, according to multiple sources. Talks between the two companies in July, suggested that Shiseido was close to acquiring OSEA, but neither company had publicly confirmed the potential agreement at the time.
OSEA, founded in 1996 by Jenefer and Melissa Palmer, is known for its seaweed-based skincare products, with a name that stands for Ocean, Sun, Earth, and Atmosphere. With annual sales estimated at $100 million, OSEA seemed like a strategic fit for Shiseido, whose focus has increasingly shifted toward skincare. OSEA’s products are sold through major retailers like Ulta Beauty and Nordstrom, as well as on its website.
However, WWD has since confirmed that the discussions have come to a halt. Both Shiseido and OSEA declined to comment on the matter, with Shiseido’s representative stating, “As a matter of company policy, we do not comment on market rumors or speculation.”
Shiseido’s stock has faced challenges recently, falling sharply in August following disappointing first-half earnings impacted by slowing demand in China and restructuring costs. While Shiseido’s stock showed a slight increase on Thursday, its struggles in the Chinese market have been evident.
Although the deal with Shiseido is no longer in play, sources have indicated that two private equity firms that initially expressed interest in OSEA may re-enter negotiations in the future.
