Japan’s beauty conglomerate Shiseido is to sell three makeup brands – BareMinerals, Buxom and Laura Mercier – to AI Beauty Holding, a newly-formed company owned by Advent International. 

The deal, estimated to value at US$700 million, is expected to be completed by the end of this year. 

The move was part of Shiseido’s new business strategy ‘Win 2023 and Beyond’, shifting its focus to higher-margin skincare products, especially in Asia. According to Shiseido, the funds will be reinvested for its long-term growth, such as development of key brands and acquisitions, mainly in the skin beauty category, digital transformation, and enhancement of production capabilities and innovations. 

“We believe Advent is the right partner to guide these incredible brands into their next chapter,” said 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.”

BareMinerals and Buxom was acquired by Shiseido in 2010, while Laura Mercier was added to the group’s portfolio later in 2016. 

​“We believe these brands have significant runway for growth, particularly as we see the large and growing color cosmetics market benefitting from secular tailwinds,” said Pascal Houdayer, who will serve as CEO of the standalone business. 

Laura Mercier founder and former CEO, Janet Gurwitch, will serve as an advisor to AI Beauty Holding.