Japanese cosmetics firm Shiseido said on Wednesday it has agreed to sell its lower-priced skincare and shampoo brands to private equity firm CVC Capital Partners for 160 billion yen (US$1.5 billion).

The brands include its Tsubaki shampoo and Senka daily cosmetics line sold at drugstores and convenience stores.

News of the sale was first revealed by Bloomberg News last month.

The deal, expected to close on July 1, comes after the Japanese firm has been looking to sell assets and focus on premium cosmetics including its namesake brand as well as Cle de Peau and Nars.

Like other luxury companies, Shiseido has been hit hard by the coronavirus as customers stayed in and spent their money on daily necessities rather than make-up. A halt in tourism has been particularly painful as the company depended heavily on duty-free sales, particularly to Chinese visitors.

The company expects a net loss of 12 billion yen in 2020.

• Reporting by Ritsuko Ando and Chris Gallagher; Editing by Kim Coghill and Rashmi Aich, of Reuters.