Advent acquires Shiseido’s Laura Mercier, bareMinerals and BUXOM to form new beauty company

26 Aug 2021 --- Private equity investors Advent International signed a definitive agreement with Shiseido Americas Corporation under which a newly formed affiliate of Advent, called AI Beauty Holdings, will acquire three of Shiseido’s cosmetics brands – bareMinerals, BUXOM, and Laura Mercier.

Financial and other terms of the transaction have not been disclosed and it is still subject to customary closing conditions. However, the transaction is expected to be completed by the end of the year, with the affiliate company also being renamed.

“We are strong believers in the bareMinerals, BUXOM, and Laura Mercier brands,” says Tricia Glynn, managing director at Advent. “They are leaders in prestige beauty and widely recognized for their quality, authenticity, and innovation, with differentiated products and devoted customers.”

Structuring the company
Upon completion of the transaction, Pascal Houdayer, who has 30 years of senior management experience in the beauty industry, will serve as Chief Executive Officer of the standalone business.

Pascal Houdayer will serve as Chief Executive Officer of the new standalone business.“We partner with Pascal as CEO of the new company to accelerate the growth of these brands by continuing to develop innovative products, expanding into new categories and geographies, and enhancing digital engagement with customers,” Glynn says.

“We believe these brands have a significant runway for growth, particularly as we see the large and growing color cosmetics market benefitting from secular tailwinds,” says Houdayer.

“I look forward to helping expand these brands across new products, channels, and regions while enabling the new company to realize its full potential.”

Advent operating partner Janet Gurwitch, founder and former CEO of Laura Mercier, advised Advent on the transaction and will continue to advise the firm and the new company.

Beauty pedigree
Launched in 1995, bareMinerals is active in mineral-based cosmetics and is considered the creator of “clean beauty” and “makeup so pure and clean you can sleep in it.”

BUXOM, created in 2007, is a color cosmetics brand focused on “going big, being bold, and feeling sexy.”

It is ranked among the top five US brands across various lip categories. Prestige makeup brand Laura Mercier was founded in 1996 and pioneered the natural, “flawless face” category.

“We believe Advent is the right partner to guide these brands into their next chapter,” notes Ron Gee, president and CEO of Shiseido Americas and Global M&A Leader. “This transaction will infuse bareMinerals, BUXOM, and Laura Mercier with the resources and support needed for the brands and their talented teams to continue to grow.”

Experience in beauty
AI Beauty Holdings will comprise three cosmetics brands – bareMinerals, BUXOM, and Laura Mercier. Founded in 1984, Advent is an investor in popular consumer brands and the services that power them.

The purchase of three brands from Shiseido Americas is Advent’s second investment in the beauty industry in the last two years, following its acquisition of prestige hair-care brand Olaplex in January 2020.

Advent was also the majority owner of Douglas, Europe’s leading beauty retailer, from 2013 to 2015.

During that time, Advent helped the company enhance its profile, expand its international presence and transform from a diversified retail conglomerate to a specialist retailer of selective beauty products.

Over the past 30 years, Advent has invested US$13.6 billion in more than 80 retail, consumer, and leisure companies worldwide. Its most recent North American investments in the sector include Olaplex, Thrasio, Sovos Brands, First Watch, Aimbridge Hospitality, and lululemon.

The company also has significant experience in buying businesses from large, global companies, having completed over 70 corporate carve-outs across 22 countries since 1991.

By Kristiana Lalou

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