Shiseido Company Limited has announced that it will be selling the bareMinerals, BUXOM and Laura Mercier makeup brands to AI Beauty Holdings, an entity owned by private equity partnership Advent International.
Shiseido said the sale is part of its medium-to-long term ‘WIN 2023 and Beyond Strategy’ as it focuses on the skincare category.
With skin beauty positioned as its new core category, Shiseido is implementing a holistic business transformation strategy to become a global leader in skin beauty by 2030.
Despite the challenges of COVID-19, Shiseido is making steady progress in terms of profitability and cash-flow management from 2021 to 2023, said the company. Under this strategy, Shiseido is prioritising skincare brands, optimising its portfolio and strengthening its competitive advantages, leading to the decision to sell the three makeup brands.
Commenting on the sale, Shiseido said: “Among the numerous interested contenders, we have concluded that Advent, a private equity partnership founded in 1984 with proven expertise in consumer products, will provide optimal support for further global growth and success of the brands through marketing investment and a high level of professionalism in business expansions, and have reached an agreement on the transfer.”
The funds from the transfer will be reinvested into new brand acquisitions and to the development of key Shiseido brands, primarily in the skincare category, said Shiseido.
The transaction is subject to customary closing conditions and is expected to be completed by the end of the year. Upon closing, newly formed AI Beauty Holdings Ltd. will complete the acquisition of the three brands (bareMinerals, BUXOM, and Laura Mercier) and the company will be renamed.
Upon completion of the transaction, Pascal Houdayer, who has 30 years of senior management experience in the beauty industry, will serve as Chief Executive Officer of the standalone business. Advent Operating Partner Janet Gurwitch, a beauty industry investor and founder and former CEO of Laura Mercier, advised Advent on the transaction and will continue to advise the firm and the new company.
“We are strong believers in the bareMinerals, BUXOM, and Laura Mercier brands,” said Tricia Glynn, a Managing Director at Advent. “They are clear leaders in prestige beauty and are widely recognised 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.”
