Sumitomo Expands Global Cosmetic Business with Launch of Joint Venture with Leading Brazilian Cosmetic Ingredient Distribution Company, Cosmotec
NEW YORK, March 7, 2013 /PRNewswire/ -- Positioning themselves as a major player in the global cosmetic business market, Sumitomo Corporation, Sumitomo Corporation of America and Sumitomo Corporation do Brasil S.A. (hereinafter collectively referred to as "Sumitomo Corporation Group") have entered an agreement to form a joint cosmetic ingredient distribution business with a leading major supplier of cosmetic ingredients and pet supplies in Brazil, COSMOTEC ESPECIALIDADES QUIMICAS LTDA (hereinafter, "Cosmotec"). Cosmotec will spin off its Cosmetic ingredient distribution business into a separate company, in which Sumitomo Corporation Group will be an investor.
In 2010, the Sumitomo Corporation Group expanded their business in the cosmetic and personal care market by acquiring 100% ownership of U.S. cosmetic ingredient distribution company, Presperse Corporation. Established in 1981, Presperse had been servicing customers which included virtually all the major multinational manufacturers of cosmetic, toiletry and personal care products, with new specialty raw materials, unique and diverse materials and formulation development.
Founded in 1987, by Luciano Fagliari and Marly Yajima Fagliari, Cosmotec operates a business centering on cosmetic ingredient distribution services and pet care in Brazil. Cosmotec sells ingredients, as well as developed formulas to major Brazilian cosmetic manufacturers. Since its establishment, COSMOTEC has expanded its business in line with the growth of the market.
"We are looking forward to collaborating with the Sumitomo Corporation Group and Presperse in expanding our cosmetic business globally by utilizing our extensive networks and established infrastructures in the Brazil and South America market", said Luciano Fagliari, President and CEO, Cosmotec. "We will continue our prosperous relationships with our existing suppliers, and basic policies while enhancing our global reach, and service to customers in Brazil." Luciano Fagliari will remain as CEO of the new company.
Sumitomo Corporation will work closely with Presperse and Cosmotec and leverage new global procurement capabilities with the goal of expanding their business throughout South America and further developing the cosmetic and personal care market.
"The largest cosmetic market in the world will be Brazil in 2016 and we will be able to satisfy this demand with this investment in Cosmotec", explained Hiromichi Maruyama, General Manager, Chemicals and Electronic Group, Sumitomo Corporation of America. "Our new business will increase global operation dramatically in the Americas by using Cosmotec's access to Brazilian Cosmetic companies and infrastructures. The Sumitomo Corporation Group will work to add value to the company with our experience, management philosophy and global networks. This combined with Presperse's R&D capabilities and their existing customer relationships with multinational customers, will enable us to broaden the services that both Cosmotec and Presperse offer their current clients."
While the Brazilian market is seeing an increasing number of multinational cosmetic manufacturers from Europe and North America entering the marketplace, it does not have many specialized cosmetic ingredient distribution company like Cosmotec. As the Brazilian personal care market continues to advance, R&D and local manufacturing of cosmetic products will increase along with the domestic demand for formulation services and materials with high functionality from overseas.
About Sumitomo Corporation
Sumitomo Corporation is a leading general trading company, with 117 locations in 65 countries and 24 locations in Japan. The entire Sumitomo Corporation Group ("the Group") consists of nearly 800 companies and more than 70,000 personnel. The SC business is continuously expanding into a diverse range of products and services. Its core business units are Metal Products; Transportation & Construction Systems; Infrastructure; Media, Network & Lifestyle Retail; Mineral Resource, Energy Chemical & Electronics; General Products & Real Estate; and Financial & Logistics. For more information, visit www.sumitomocorp.co.jp/english/
About Sumitomo Corporation of America
Sumitomo Corporation of America (SCOA) with consolidated assets of $7.2 billion is a wholly owned subsidiary of Sumitomo Corporation (SC), an integrated trading and investment enterprise engaged in multifaceted business activities, which include selling a variety of domestic products and services, conducting import/ export and trilateral business transactions, providing domestic and international business investment, and participating in numerous other profitable activities facilitated by its global network and the relationships of trust built with corporate business partners and consumers in various industrial sectors around the world. In 2010, the Sumitomo Corporation Group acquired 100% ownership of U.S. cosmetic ingredient distributor, Presperse Corporation. For more information, visit www.sumitomocorp.com.
About Sumitomo Corporation do Brasil S.A.
Headquartered in Sao Paulo, Sumitomo Corporation do Brasil S.A. was established in 1964 and has operated in Brazil for over 40 years developing businesses and partnerships in different market segments, contributing to the technical evolution and business expansion for its partners. Sumitomo has three additional offices in Brazil in Porto Alegre, Rio de Janeiro and Recife. For more information, visit www.sumitomo.com.br.
COSMOTEC ESPECIALIDADES QUIMICAS LTDA was established in 1987 in Sao Paulo and is one of Brazil's leading cosmetic ingredient distribution companies. With two locations that include warehousing and R&D facilities, the company supplies cosmetic ingredients to major Brazilian cosmetic companies, as well as multinationals cosmetic companies in Brazil.
For more information, visit www.cosmotec.com.br .
SOURCE Sumitomo Corporation of America