Bain makes binding FineToday bid, eyes Asia beauty market: sources

[HONG KONG] Bain Capital has made a binding offer for Japanese personal-care group FineToday Holdings, 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Bain’s rivals KKR and Blackstone were in the bidding race but have withdrawn, the people said, asking not to be identified discussing private matters.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’s personal-care business to CVC Capital Partners, in a deal worth about US$1.5 billion. A CVC-backed entity bought 20 per cent 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 cancelled plans for an IPO for a second time, Bloomberg News reported in November.

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The failure came after investors demanded a valuation that did not meet the company’s expectations, despite FineToday slashing its valuation to 169 billion yen (S$1.4 billion). The business had sought 219 billion yen in its first listing attempt.

Japan saw a record year for deals in 2025, with transaction volume approaching US$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 US$10 billion in Japan, including acquiring a Japanese supermarket company from 7-Eleven operator Seven & i Holdings. BLOOMBERG