Johnson & Johnson (China) Investment Co. Ltd. has announced that the company has completed the acquisition of Beijing Dabao Cosmetics Co. Ltd., making Dabao the third Chinese cosmetics brand acquired by foreign companies after Yue Sai and Mininurse.
Although Johnson & Johnson (China) did not give any financial details about the transaction or the purchase price, a report from Reuters said that the deal was estimated at more than USD300 million.
Johnson & Johnson (China) told local media that the company had completed the acquisition of Beijing Dabao Cosmetics Co. Ltd. through Beijing Sanlu Factory and the Staff Shareholding Committee of Beijing Dabao and the acquisition has been approved by the relevant government departments.
Jesse Wu, president of Johnson & Johnson (China) said that Dabao is a successful brand in the Chinese market. They are pleased to add the well-known and respected Dabao brand to their growing portfolio of healthcare brands in China. He added that with Johnson & Johnson's experience in marketing, research and development, and product innovation, the company will further develop the Dabao brand.
Statistics show that Dabao's sales reached CNY780 million in 2005, accounting for a 1% market share. Its sales declined to CNY676 million in 2006. In March 2007, Daobao registered with the China Beijing Equity Exchange to sell its 100% stake, of which 83.42% was owned by Beijing Sanlu Factory and 16.58% was owned by the Staff Shareholding Committee of Beijing Dabao.