Global strategic change
The transaction marks a global strategic shift for Japan’s largest cosmetics group, which is refocusing on higher margin skincare products, particularly in Asia, with the goal of becoming a global leader in skin beauty by 2030. Earlier this year, Shiseido agreed to sell its mass market skin care and toiletries business to CVC Capital Partners in an agreement worth 160 billion yen (1.5 billion USD or 1.3 billion EUR).
Shiseido acquired the brands owned by Bare Escentuals, bareMinerals and BUXOM in 2010, in a $ 1.9 billion transaction. Laura Mercier was acquired in 2016 for $ 248 million. According to the Japanese group, the cumulative sales of the three brands during the fiscal year ended December 31, 2020, represented 4.9% of its consolidated turnover.
The company has stated that it will reinvest the funds obtained from the transfer in areas critical to its long-term growth, ”such as the development of key brands and acquisitions, mainly in the skin beauty category, digital transformation and improvement of production capacities and innovations.“
However, Shiseido will not withdraw from the United States, where it continues to market makeup brands such as Nars, Clé de Peau Beauté, the Drunk Elephant skin care line and fragrance brands like Issey Miyake, Narciso Rodriguez. and Dolce & Gabbana.
New autonomous company within Advent
Launched in 1995, bareMinerals is an American leader in mineral-based cosmetics and is considered the creator of “clean beauty”. BUXOM, established in 2007, is a color cosmetics brand focused on “being tall, being bold and feeling sexy”. It is ranked among the top five American brands in various lip categories. The prestige makeup brand Laura Mercier was founded in 1996 and was a pioneer in the natural “flawless face” category.
According to Tricia Glynn, Managing Director of Advent, bareMinerals, BUXOM and Laura Mercier are “undisputed leaders in prestige beauty and are widely recognized for their quality, authenticity and innovation, with differentiated products and dedicated customers.“
Advent will welcome all three brands to its new subsidiary, AI Beauty Holdings Ltd. At the end of the transaction, Pascal Hodayer, former managing director of NAOS (Bioderma, Esthederm, Etat Pur), will assume the functions of managing director of the autonomous activity.
“We believe these brands have significant growth potential, especially as we see the large and growing color cosmetics market benefiting from secular tailwinds. I look forward to helping grow these brands across new products, channels and regions, while enabling the new company to realize its full potential,», Declared Pascal Hodayer.