Shiseido has announced a deal to sell off most of its cosmetics brands in the US to private equity giant Advent International.
The deal will see the Shiseido Americas unit sell the bareMinerals, BUXOM, and Laura Mercier brands to AI Beauty Holdings, a newly-formed affiliate of Advent. bareMinerals is the leader in mineral-based cosmetics; BUXOM is a colour cosmetics brand ranked among the top five in the US across various lip categories; while prestige makeup brand Laura Mercier pioneered the natural, “flawless face” category. The brands accounted for 4.9% of Shiseido’s global group sales in the last fiscal year.
Although no financial details of the deal were disclosed, the Financial Times pegged the sale price at $700m – if confirmed, that would mark a 67% drop on the $2.15bn price Shiseido paid for them. Shiseido has struggled to incorporate the brands since buying them, and in 2017, incurred a $623m writedown on bareMinerals and BUXOM.
The move is part of a wider divestment programme by the Japanese giant, which has also sold its personal care business to CVC for $1.5bn. The sale to Advent leaves it with the Nars cosmetics brand and the Drunk Elephant skincare line in the US.
Following the completion of the deal, Pascal Houdayer will take over as CEO of the standalone business. Houdayer has over 30 years of experience leading beauty and personal care businesses, including 19 years at P&G, heading Henkel’s Beauty Care division, and being CEO of dermo-cosmetics major NAOS.
Ron Gee, President and CEO of Shiseido Americas, noted: “We have been proud stewards of bareMinerals, BUXOM, and Laura Mercier, and we believe Advent is the right partner to guide these incredible brands into their next chapter. This transaction will infuse bareMinerals, BUXOM, and Laura Mercier with the resources and support needed for the brands and their talented teams to continue to grow.”
Tricia Glynn, a Managing Director at Advent, added: “We are strong believers in the bareMinerals, BUXOM, and Laura Mercier brands. They are clear leaders in prestige beauty and are widely recognized for their quality, authenticity, and innovation, with differentiated products and devoted customers. We are excited to partner with Pascal as CEO of the new company to accelerate the growth of these brands by continuing to develop innovative products, expanding into new categories and geographies, and enhancing digital engagement with customers.”
