Shiseido Gets Bare

Exciting news!

Two of our favorite cosmetic companies, Shiseido and Bare Escentuals Inc, are joining forces.

That’s right!

The Japanese cosmetic brand just put out a $1.7 billion tender offer for Bare Escentuals, scheduled to start in ten days. A rep for Shiseido said that the board of Bare Escentuals will back the offer, and Bare Escentuals’s CEO, Leslie Blodgett, is prepared to exchange 40% of her stake in Bare Escentuals for interest in Shiseido.

Sounds like a very amicable communion!

The way it will work is that Bare Escentuals will operate as a division of Shiseido with its business managed by its current executives, including Blodgett. That’s good! Always a good thing when no jobs are lost!

The aim of the deal is to flourish both companies: Bare Escentuals will benefit from Shiseido’s global distribution and strength in research and development, while Shiseido will benefit from Bare Escentuals’s front-and-center role in the world of mineral cosmetics as well as its stellar marketing expertise.

What’s more, the acquisition is expected to broaden Shiseido’s customer base and allow the Japanese brand to move into the world of mineral cosmetics. Bare Escentuals, in turn, will be given the opportunity to broaden its product range to include cosmetics other than mineral makeup and foundation. While the brand has enjoyed great success in the foundation and cover-up arena, only a small percentage of the company’s customers use its lip and eye products.

Shinzo Maeda, president and CEO of Shiseido, said,

“This acquisition further enables Shiseido to move toward our goal of becoming a global player representing Asia, with its origins in Japan. We have known and admired Bare Escentuals’s excellent team and their achievements for a long time, and look forward to their contribution to our combined group. The operational fit and future growth prospects make this an excellent transaction for our customers, employees, and shareholders.”

Similarly, Blodgett commented that she,

“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.”

Sounds like happy news all around. Congrats and good luck to both companies going forward!

[Images courtesy of Shiseido / Bare Escentuals.]