Byline: Pete Born and Molly Prior
A Big Move in Beauty: Shiseido Offers $1.7B To Buy Bare Escentuals
In a bold step, Japanese cosmetics giant Shiseido Co. Ltd. has launched an estimated $1.7 billion tender offer to acquire Bare Escentuals Inc., one of the hottest brands of recent years.
Under the terms of the tender offer, which is scheduled to start in 10 days, Shiseido plans to buy shares for $18.20 each, a 40.8 percent premium over Bare Escentuals' average stock price during the last three months, and a 39.9 percent premium over the closing price Wednesday. Once the majority of stock is tendered, Shiseido said it would buy the remaining shares for the same price, $18.20, in a second-step merger. The offer was made through Shiseido's U.S. affiliate.
Shiseido said the Bare Escentuals board will back the offer. Among the shareholders, Berkshire Partners LLC and certain affiliates, which hold about 16 percent of outstanding common stock, have agreed to the deal. In addition, Bare Escentuals …