Japan-based global cosmetics company, Shiseido, recently announced finalized plans to purchase Bare Escentuals, a United States-based leading prestige mineral cosmetics company.
Shiseido will acquire Bare Escentuals for approximately $1.7 billion through an all-cash tender offer and second-step merger. Through a U.S. subsidiary, Shiseido will purchase all outstanding shares of Bare Escentuals common stock for $18.20 per share, which is nearly a 41 percent premium over Bare Escentuals’ average closing stock price over the past three-month period.
Leslie Blodgett, Chief Executive Officer of Bare Escentuals, has agreed to exchange 40 percent of her existing common stock for a continuing interest in Bare Escentuals following completion of the tender offer. Following completion of the tender offer and contribution of Blodgett’s shares, Shiseido intends to acquire the remainder of outstanding shares of Bare Escentuals common stock for $18.20 per share through a second-step merger.
“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, “ said Blodgett in a news release. “Together with Shiseido, we look forward to bringing our mineral-based beauty products to even more women worldwide."
Bare Escentuals develops, markets and sells cosmetics, skin care and body care products under the popular bareMinerals brand. Over 85 percent of its revenues are generated through retail and direct sales (typically from QVC) in the United States. With Shiseido’s purchase,
Bare Escentuals is expected to rapidly expand in the international cosmetics market, particularly in the Chinese and broader Asian markets where Shiseido has a strong presence.
Bare Escentuals will run as a Shiseido subsidiary under its current management, including Blodgett remaining as the Chief Executive Officer.
Written by Sharalyn Hartwell
HULIQ.com
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