Japanese cosmetics maker Shiseido to acquire Bare Escentuals Inc. for $1.7 billion

Japan's largest cosmetics company, Shiseido Co. yesterday signed a deal to acquire San Francisco's mineral-based cosmetic company Bare Escentuals Inc. for $1.7 billion, in a move designed to expand its brand portfolio into the mineral-based cosmetics market.

Started in 1872, Tokyo-based Shiseido is one of the oldest cosmetics companies in the world with operations in over 70 countries and had annual sales of $7.5 billion in fiscal year 2009.

Shiseido, through its US subsidiary has offered to buy all the outstanding shares of Bare Escentuals for $18.20 a share in cash, representing a premium of 43 per cent over Bare Escentuals' Thursday closing price on the Nasdaq and valuing the company at $1.7 billion.

The transaction, which could be Shiseido's biggest acquisition and the biggest outbound acquisition by a Japanese cosmetics firm, was unanimously approved by both boards of directors.

Bare Escentuals' will operate as a separate division of Shiseido and its brands will continue to be managed by Leslie Blodgett, the CEO of Bare Escentuals, said Shiseido.

Shinzo Maeda, president & CEO of Shiseido said, ''This acquisition further enables Shiseido to move towards our goal of becoming a global player representing Asia with its origins in Japan. We have known and admired Bare Escentuals' excellent team and their achievements for a long time, and look forward to their contribution to our combined group''.
 
''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. First and foremost, I would like to thank our talented employees, our channel partners, and our loyal customers who have helped build Bare Escentuals from a small niche brand into one of the world's leading prestige cosmetics companies. Together with Shiseido, we look forward to bringing our mineral-based beauty products to even more women worldwide,'' said Blodgett.