Shiseido Americas acquires Laura Mercier and RéVive

06-Jun-2016 - Last updated on 07-Jun-2016 at 15:18 GMT

Shiseido is buying Gurwitch Products (the holding company of those two makeup brands), and the deal is expected to bring the Japan-based cosmetics company closer to its ambitious 2020 sales goal of 1 trillion yen.

The deal was announced late last week and it looks to be a smart move for all companies involved. The Alticor portfolio includes not only Gurwitch Products but also Amway. Given this latest deal, Alticor seems to be focusing its beauty and personal care business more narrowly on Amway’s Artistry brand.

”Shiseido is the perfect home for Gurwitch and these beloved brands at this stage in their trajectory,” Candace Matthews, says in a press release. Matthews oversees the Gurwitch business and is president of the Americas region for Amway.

Color and care

Shiseido does well with color cosmetic lines like NARS that have clear brand DNA and devoted fans. The company believes the two brands it’s picking up in this latest deal can perform well for the same reasons: “We are thrilled to welcome Laura Mercier and RéVive to the Shiseido family. Both brands have unique viewpoints, fast-growing and loyal customer bases, and the same focus on innovation that defines all of Shiseido’s brands,” Marc Rey, president and CEO of Shiseido Americas, tells the press.

The company will integrate Laura Mercier into its portfolio of color cosmetic 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,” affirms Rey.

“And RéVive, with its proven restorative formulas and use the technologies, is a terrific fit with Shiseido’s skincare heritage,” he adds.

Dollars and cents

Terms of the deal haven’t been released. But for comparison, Gurwitch reported $175m in sales for its 2015 fiscal year.

And, Shiseido paid $1.7bn for Bare Escentuals six years ago—costs “the company is still contending with,” as bloomberg.com reports. And now, to move that brand’s operations from San Francisco to New York City, Shiseido will spend another 5bn yen.

The retail and consumer investment bank Financo, which specializes in several sectors including personal care and beauty, served as the financial advisor to Shiseido Americas on the Laura Mercier and RéVive transaction.

Now, subject to the usual conditions and regulatory approvals, the deal is expected to close in Q3 of this year. Once that happens, Shiseido has plans to “rapidly integrate the new brands into its regional organization,” according to the company’s press release.

Reflecting on the acquisition, Rey remarks, “Shiseido is well positioned to generate significant value from this attractive acquisition opportunity, and we are energized to use our regional and global resources to take these brands to the next level and further strengthen our overall position in the marketplace.”