Sumitomo Group to expand cosmetic ingredients business with Kyowa Hakko Europe acquisition

Sumitomo Corporation and Summit Pharmaceuticals International, collectively known as Sumitomo Group, will acquire cosmetic ingredients business from Kyowa Hakko Europe.

The acquisition will allow Sumitomo Group to fully advance into cosmetic ingredients business in Europe.

Sumitomo Group first started its cosmetic ingredients business by exporting ingredients produced in Japan.

It has expanded the scope of business by investing in Presperse Corporation and Cosmotec International Especialidades Cosmeticas, cosmetic ingredients suppliers in the US and Brazil, since 2010.

Kyowa Hakko Europe operates mainly in Germany as well as other parts of Europe, Middle and Near East, and its neighbouring regions.

With this deal, Sumitomo Group will secure rights to market cosmetic ingredients including vitamins and moisturizing agents for hair care and skin care products in the European market, which accounts for approximately 30% of the global cosmetics ingredients market.

By establishing a business foundation in Europe in addition to the US, Brazil, Japan and China, the Sumitomo Group will have the capability to cater to all the major markets in the world.

Kyowa Hakko Europe’s products will be an addition to the range of functional ingredients offered by Presperse and Cosmotec.

Sumitomo Group plans to increase its annual sales to $200m from $100m over the next three years.