According to an article by Cosmetics Business, Japanese beauty group, Shiseido, has announced the sale of its prestige makeup brands, bareMinerals, BUXOM and Laura Mercier to AI Beauty Holdings – a new company created by private equity firm Advent – the majority owner of Douglas (Europe’s biggest beauty retailer).
The move is said to be part of Shiseido’s long-term strategy to only support the brands, market regions and categories that aid the brand’s competitive position and global growth.
Rumours started circulating earlier this year that the beauty company was considering sellings its North American brands, however no comments were made regarding the speculation.
Now, Shiseido has said that under the guidance of AI Beauty, the three brands would be better positioned to accelerate their trajectory, as it supports its prestige beauty category.
“While bareMinerals, Buxom and Laura Mercier have been a core part of our portfolio and have benefitted from Shiseido’s stewardship to date, we believe Advent is uniquely positioned to continue supporting all three brands alongside their talented teams moving forward,” said Shiseido Group president and CEO, Masahiko Uotani.
This marks the second time in 2021 that Shiseido has decided to divest its brand portfolio, offloading its lower-budget personal care brands to CVC in February.
Among the beauty brands left in the Shiseido portfolio include its own-brand cosmetics and skincare brand Shiseido, as well as NARS, Drunk Elephant, Clé de Peau Beauté, and fragrance brands, Narciso Rodriguez, Issey Miyake and Serge Lutens.
Shiseido said it remains focused on making strategic investments across its portfolio and exploring other potential opportunities that fit into its premium skin beauty and global growth objectives.
Meanwhile, Advent said it is a strong believer in the potential of its newly acquired brands and hopes to accelerate their growth by continuing to develop innovative products, expanding into new categories and geographies, and enhancing digital engagement with customers.
While terms of the acquisition were not disclosed, a statement published by Shiseido lists the transfer price as US$700 million.