CVC seeks over $2 billion sale of FineToday after canceling IPO attempt.

Private equity firm CVC Capital Partners is actively pursuing the sale of FineToday Holdings, a major Japanese personal-care company known for brands such as Tsubaki shampoo. This decision follows CVC's recent action to postpone FineToday's initial public offering (IPO) on the Tokyo Stock Exchange, citing unfavorable market conditions.

FineToday's IPO, initially scheduled for October, was expected to debut with a market capitalization of approximately 169 billion yen ($1.08 billion) in the postponed attempt. This figure, however, represented a decrease from an earlier valuation target of roughly 219 billion yen during a 2024 attempt to go public. According to sources familiar with the matter, both valuations fell short of CVC's internal expectations. CVC is now seeking a significantly higher valuation for the sale, targeting over $2 billion, which equates to approximately 14–15 times the company's earnings before interest, taxes, depreciation, and amortisation (EBITDA).

FineToday was established in 2021 as a result of a 160 billion yen carve-out deal in which Shiseido Co. sold its personal-care unit to CVC. The Tokyo-based company manufactures and markets a variety of products, including haircare, skincare, and deodorants, under well-known brands such as Fino, Senka, Uno, Ag Deo24, and Kuyura, in addition to Tsubaki.

About half of FineToday's sales revenue originates from overseas markets, with China serving as its second-largest market. In the first half of 2025 (ending June 30), 44.3% of FineToday's revenue came from Japan, while China and Hong Kong combined contributed 35.9% of total revenue. FineToday reported total revenue of 107.3 billion yen ($688.66 million) in 2024 and 56.6 billion yen in the first half of 2025. During the latter period, the company demonstrated improved profitability, with its adjusted EBITDA margin rising from 15.5% in the previous year to 21.0%.

The company's performance, particularly in key overseas markets, faces ongoing geopolitical risks. FineToday noted in its latest preliminary offering document that its sales in China and Hong Kong were adversely affected by a consumer backlash against Japanese brands following Japan's release of treated water from the Fukushima nuclear plant in 2023. The company also warned that it remains vulnerable to future geopolitical tensions, which could continue to impact its sales performance in the region.

Interest in acquiring FineToday has reportedly emerged from global buyout firms and at least one Chinese strategic investor, although specific names were not disclosed by sources. CVC and FineToday both declined to comment on the potential sale, indicating the confidential nature of the information surrounding the transaction.