There's gold in mineral makeup...at least for shareholders of Bare Escentuals. Shiseido acquired Bare Escentuals for approximately $1.7 billion through an all-cash tender offer and second-step merger. The transaction was approved by the boards of directors of both companies by unanimous vote of those directors present and voting.

By buying 91.7 percent of the U.S. cosmetics company's outstanding shares last week, the acquisition is now completed.Trading of Bare Escentuals stock ceased on the Nasdaq market after Shiseido bought the shares via public tender and a transaction involving the shareholdings of the U.S. firm's chief executive officer.

Shiseido took over the California-based firm to strengthen its presence in the U.S. market and expand its product offerings to include the U.S. company's mineral-based cosmetics.

Bare Escentuals’ business will operate as a separate division of Shiseido and its unique brands will continue to be managed by the current leadership team who are expected to drive future development of the business with the support of Shiseido’s significant resources, particularly given Shiseido’s extensive R&D network around the world. The transaction will strengthen both companies and provide a platform for further growth, ultimately bringing significant benefits to consumers, employees and shareholders by:

• Expanding Shiseido’s brand portfolio into the mineral-based cosmetics market, attracting a wider customer base;
• Creating a complementary multi-channel and truly global distribution network, giving Bare Escentuals greater access to Japan, one of the world’s largest cosmetics markets, as well as other fast-growing Asian markets such as China;
• Strengthening Shiseido’s successful U.S. and European business;
• Maximizing both companies’ production capabilities and R&D resources;
• Delivering a significant premium to Bare Escentuals shareholders; and
• Offering compelling growth prospects and future value creation for Shiseido shareholders.

Shinzo Maeda, president and CEO of Shiseido commented, “This acquisition further enables Shiseido to move towards our goal of becoming a global player representing Asia with its origins in Japan. We have known and admired Bare Escentuals’ excellent team and their achievements for a long time, and look forward to their contribution to our combined group. The operational fit and future growth prospects make this an excellent transaction for our customers, employees and shareholders.”

Leslie Blodgett, chief executive officer of Bare Escentuals, added, “This is an exciting day for all of us at Bare Escentuals and I couldn’t be more pleased to be joining forces with the team at Shiseido.

First and foremost, I would like to thank our talented employees, our channel partners, and our loyal customers who have helped build Bare Escentuals from a small niche brand into one of the world’s leading prestige cosmetics companies. Together with Shiseido, we look forward to bringing our mineral-based beauty products to even more women worldwide.” (The Japan Times)