On June 2, Shiseido announced that it has signed a definitive agreement to acquire Gurwitch Products, owner of the Laura Mercier and RéVive brands, from parent company Alticor. While Shiseido did not disclose the acquisition price, President and CEO Marc Rey cited the innovation, unique market positioning and fast-growing customer bases of the Laura Mercier and RéVive brands as primary considerations for the transaction. Laura Mercier, a namesake brand of the makeup artist, is known for its flawless-look products, including its famous tinted moisturizer. RéVive is a luxury beauty skincare brand created by plastic surgeon Dr. Gregory Bays Brown in 1997. The two brands generated combined revenue of $175 million in 2015; industry sources estimate that Laura Mercier generated $160M in revenue and RéVive $15M. The two brands complement Shiseido’s current brands, which include NARS, bareMinerals, Shiseido, and Clé de Peau Beauté. The acquisition is part of Shiseido’s effort to strengthen its prestige brand portfolio, particularly in makeup. The makeup segment has outperformed the overall market, especially in the US and Asia. Laura Mercier has a strong presence in the US and good potential in many Asian markets, including Thailand and South Korea. While RéVive is a small part of Gurwitch’s business, acquiring the brand will enable Shiseido to tap into some new areas of skincare technologies, with a focus on anti-aging. The acquisition is driven by the company’s strategic “Vision 2020” plan, which allows each region to have more autonomy to grow the business. Shiseido has been expanding its global footprint through acquisitions in recent years. In 2010, it acquired American makeup company Bare Escentuals in order to grow its market share in the US. Shiseido wrote down the cost of the acquisition in 2013, as Bare Escentuals’ sales were below expectations. In 2015, Shiseido announced the acquisition of French luxury perfume brand Serge Lutens, which included the brand’s broad distribution channels in 35 countries. Shiseido’s Gurwitch acquisition is the latest in a long list of M&A activity in the global beauty industry in recent years. Companies such as Unilever, Procter & Gamble, L’Oréal and Macy’s have been actively seeking opportunities in color makeup and skincare.

Recent Notable Beauty Industry M&A Activity

Source: Company reports