TOKYO — After months of speculation, Shiseido announced Tuesday that it has signed a deal to amass a one hundred pc stake in “clean beauty” brand Drunk Elephant, in a transaction valued at roughly $845 million. The move is the newest step within the Japanese beauty company’s push to develop into a much bigger player with a more global footprint.

Founded in 2012 by Tiffany Masterson and launched in August 2013, Drunk Elephant helped to pioneer the clean beauty movement. It saw exponential sales growth, with estimates putting its net sales for 2018 near $100 million. It has attracted customers representing a big selection of demographics, but is particularly popular amongst Millennials and Gen Z.

“Drunk Elephant will give you the option to leverage Shiseido’s global platform and resources to expand into latest and existing markets each within the Americas and internationally including Europe and Asia,” Shiseido said in its release. “Shiseido’s Global Innovation Center and Digital Center of Excellence will provide a wealth of experience and a novel support network, maximizing Drunk Elephant’s opportunities for growth and development across all channels.”

Speculation concerning the possible sale of Drunk Elephant had been ongoing since early this 12 months, and just last week it was rumored that Shiseido and Estée Lauder were among the many finalists for the transaction.

Masahiko Uotani, Shiseido’s president and chief executive officer whose contract was just renewed for a further five years in late September, called Drunk Elephant “considered one of the fastest-growing skin-care brands in history.”

“Drunk Elephant’s approach strongly resonates with its highly engaged and dependable consumers, who value the integrity and effectiveness of Drunk Elephant’s formulations combined with a fun, curious approach,” Uotani was quoted as saying in the discharge. “I’m confident that under Marc Rey’s leadership within the Americas and Shiseido’s global platform and unique resources, we are going to strongly support Drunk Elephant on its ongoing growth trajectory.”

Rey, chief executive officer of Shiseido Americas and chief growth officer of Shiseido, said,” This latest and incredibly exciting partnership builds on Shiseido’s significant momentum and successful track record of acquiring distinctive, best-in-class brands. Drunk Elephant is changing the way in which people understand and experience beauty by offering products which are effective and clean compatible. Drunk Elephant is built on a powerful brand foundation and a novel philosophy that matches perfectly with Shiseido’s values and skin-care heritage. Our progressive and people-first cultures are well aligned, and we share an unwavering commitment to our consumers. I also imagine the brand will contribute to the business performance of Shiseido Americas.”

Drunk Elephant avoids what it calls the “suspicious six” — essential oils, drying alcohols, silicones, chemical sunscreens, fragrance and dyes, and SLS. The corporate’s products include Protini Polypeptide Cream, $68; C Firma Day Serum, $80; TLC Sukari Babyfacial, $80, and B Hydra Intensive Hydration Serum, $52.

“I began this business as an industry outsider, and from the start I did things a bit of in another way,” Masterson said. “To hitch with a powerhouse beauty company akin to Shiseido that leads the industry in innovation and global excellence is a dream come true for me and for Drunk Elephant. We share similar values, most significantly an unwavering commitment to the patron. I selected a partner who will let the brand proceed to be itself, with the identical formulations and the identical team.”

The transaction is predicted to shut before the top of the 12 months. When complete, Drunk Elephant will operate inside Shiseido Americas, and Masterson will proceed in her role as chief creative officer while also assuming the title of president, reporting on to Rey.

See Also:

Drunk Elephant: Beauty’s Next Acquisition?

The Great Essential Oil Debate: The Argument For and Against

Natural Beauty: Grassroots No More