Beauty News. Shiseido Launches Lofty Sale of Bare Escentuals

January 18, 2010 • Beauty

Bare Escentuals mineral makeup

Japanese beauty titan Shiseido announced last week it would be launching a tender offer to buy uber-popular American brand Bare Escentuals, Inc., the pioneer of the mineral makeup movement. The tender offer is valued at an estimated $1.7 billion and involves Shiseido buying 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 said it would buy the
remaining shares for the same price, $18.20, in a second-step merger. The Tokyo-based company plans to expand its product reach to include the mineral makeup line, therefore widening the Shiseido customer base in Asia.“This acquisition further enables Shiseido to move toward our goal of
becoming a global player representing Asia, with its origins in Japan,”
said Shinzo Maeda, President and CEO of Shiseido. “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."
The acquisition will be operated as a separate division of Shiseido and its business will reportedly be managed by the current roster of executives, led by Leslie Blodgett, Bare Escentuals current CEO. Blodgett,
who is expected to report to Tokyo headquarters, currently holds 6 percent of the firm and plans to trade 40 percent of her stake in exchange for an undisclosed interest in Shiseido.“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,” Blodgett
said. In addition to introducing the mineral makeup revolution, Bare Escentuals has also created a unique platform for itself through combining beauty supply chains such as Sephora and Ulta with a strong TV shopping component, a department store holding, and its own stand-alone boutiques. With the newfound exposure that Shiseido will afford, the Bare Escentuals beauty line may very well be the next best-selling global brand.

Article and Photo Source: WWD

-Alia Rajput

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