OREANDA-NEWS. 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 QU?MICAS 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.

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.