Shiseido Buys Bare Escentuals!

Japan’s No. 1 cosmetics company, Shiseido, wants to strengthen its international appeal, and so the company announced on Friday (Jan. 15) it will buy San Francisco-based cosmetics brand Bare Escentuals, known for its Bare Minerals products, for $1.7 billion.

Bare Escentuals products are sold in 800 retail outlets and 1,500 salons in the United States, while Shiseido is an established cosmetics brand in the Asian market. In 2009 Shiseido made $7.5 billions in sales with two-fifths of the profit coming outside Japan. Bare Escentuals generated $556 million with 85% of the sales coming from the U.S in 2008. The $1.7 billion business deal is expected to create a global distribution network for the Japanese company and increased its presence in the U.S. market. The deal also will allow Bare Escentuals to enter the Asian market, especially in Japan and China.

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