In a bold step, Japanese cosmetics giant Shiseido Co. Ltd. has launched an estimated $1.7 billion tender offer to acquire Bare Escentuals Inc., one of the hottest brands of recent years.
Bare Escentuals has been at the forefront of the distribution in the U.S. beauty revolution, combining midmarket specialty store chains such as Sephora and Ulta with a strong TV shopping component and a department store anchor. It also operates its own stand-alone boutiques.
The acquisition is expected to widen Shiseido’s customer base and extend its product reach into mineral cosmetics, giving Shiseido a foothold in Bare Escentuals’ key channels, including TV retailing and the Internet. It is also expected to strengthen Shiseido’s presence in Europe and Asia. In addition, the deal would provide the makeup brand with greater access to Japan, as well as other fast-growing Asian markets, such as China. Bare Escentuals is the number-one makeup brand on QVC U.S. and Japan, according to the company.
Bare Escentuals has been at the forefront of the distribution in the U.S. beauty revolution, combining midmarket specialty store chains such as Sephora and Ulta with a strong TV shopping component and a department store anchor. It also operates its own stand-alone boutiques.
The acquisition is expected to widen Shiseido’s customer base and extend its product reach into mineral cosmetics, giving Shiseido a foothold in Bare Escentuals’ key channels, including TV retailing and the Internet. It is also expected to strengthen Shiseido’s presence in Europe and Asia. In addition, the deal would provide the makeup brand with greater access to Japan, as well as other fast-growing Asian markets, such as China. Bare Escentuals is the number-one makeup brand on QVC U.S. and Japan, according to the company.
(From WWD)
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