Shiseido Co., a 140-year-old Japanese brand leading cosmetics maker, just announced to acquire Laura Mercier and RéVive, a U.S. based company of Gurwitch Products, LLC. Shiseido is one of the oldest multinational cosmetics companies in the world. The acquirement signals the company`s efforts on seeking growth overseas in the luxury and anti-aging products market.
The deal is scheduled to close in the third quarter of 2016, with the potential purchase price of $260 million. According to the statement released by Shiseido, the effect of the acquisition for this year is expected to be less than Gurwitch`s revenues for the fiscal year 2015 at $175 million.
Shiseido owns plenty of makeup lines except for its namesake brand, including Nars, BareMinerals, Ipsa, and Clé de Peau Beauté, etc. It also operates fragrance businesses like Narciso Rodriguez and Issey Miyake, and affordable and mid-priced beauty and skincare brands marketed in Asia. RéVive and Laura Mercier will complement the company’s existing beauty brands. Marc Rey, Shiseido America`s president and chief executive officer, said in the press release:
“Both brands have unique viewpoints, fast-growing and loyal customer bases, and the same focus on innovation that defines all of Shiseido’s brands. Laura Mercier’s classic French elegance and artistry perfectly complements the unique styles and offerings of NARS, BareMinerals, Shiseido and Clé de Peau Beauté to create a formidable portfolio of prestige makeup. And RéVive, with its proven restorative formulas and use of Nobel prize-winning technologies, is a terrific fit with Shiseido’s skincare heritage.”
Shiseido plans to promote two brands globally, saying “we do believe it has potential on all the continents.” The acquirement will help enrich Shiseido’s U.S. brand portfolio and provide growth opportunities for the company.