Tokyo: Japan's top cosmetics maker Shiseido Co said Friday it had agreed to buy Bare Escentuals of the US for $1.7 billion in a friendly takeover.
The management of the two companies have struck a definitive agreement on an all-cash tender offer of 18.20 dollars per share for Bare Escentuals, a maker of mineral-based cosmetics, Shiseido said in a statement.
Shiseido, Japan's largest cosmetics company, has enjoyed fast-growing profits in recent years, helped by booming demand for beauty products in China and other Asian markets.
With the takeover offer, which must be accepted by a majority of Bare Escentuals shareholders, Shiseido aims to expand its brand into mineral-based products and widen its customer base.
"This acquisition further enables Shiseido to move towards our goal of becoming a global player representing Asia with its origins in Japan," Shiseido chief executive Shinzo Maeda said in a statement.
"The operational fit and future growth prospects make this an excellent transaction for our customers, employees and shareholders."
Bare Escentuals aims to benefit from Shiseido's distribution channels in Japan and Asia, particularly its strong foothold in China.
First Published: Friday, January 15, 2010, 11:02