Mineral beauty business will operate as a separate division
Japanese cosmetics giant Shiseido is to buy the US mineral beauty company Bare Escentuals in a friendly takeover for $1.7bn. The transaction has already been approved by the Boards of Directors of both companies by a unanimous vote.
Under the terms of the tender offer, which is scheduled to start in 10 days, Shiseido will buy shares for $18.20 each, a 40.8 percent premium over Bare Escentuals’ average stock price during the last three months. Once the majority of stock is tendered, Shiseido will buy the remaining shares for the same price in a second-step merger.
Bare Escentuals’ business will operate as a separate division of Shiseido and its unique brands will continue to be managed by the current leadership team - notably ceo Leslie Blodgett - who are expected to drive future development of the business with the support of Shiseido’s significant resources, particularly given Shiseido’s extensive R&D network around the world.
"This acquisition further enables Shiseido to move towards our goal of becoming a global player representing Asia with its origins in Japan," Shiseido chief executive Shinzo Maeda said in a statement. "The operational fit and future growth prospects make this an excellent transaction for our customers, employees and shareholders."
Bare Escentuals aims to benefit from Shiseido's distribution channels in Japan and Asia, particularly its strong foothold in China.
Leslie Blodgett, added, “This is an exciting day for all of us at Bare Escentuals and I couldn’t be more pleased to be joining forces with the team at Shiseido. Together [with Shiseido], we look forward to bringing our mineral-based beauty products to even more women worldwide.”
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