Japanese beauty giant, Shiseido, has sealed a deal with Alticor Inc to acquire its wholly-owned Texas-based subsidiary Gurwitch Products, whose portfolio includes global prestige colour, skincare, and body/bath house, Laura Mercier, and luxury skincare brand RéVive.

The acquisition is being made by the subsidiary Shiseido Americas Corporation and under the terms of the deal SAC will acquire 100% of the membership interests in Gurwitch – whose sales in 2015 were $175m. The effect of the acquisition on Shiseido’s consolidated financials for FY2016 (ending 31 December) is expected to be minor.

Shiseido says that the two brand additions to its own portfolio “are highly complementary” to its prestige make-up and skincare brands adding: “The combination is expected to provide Shiseido with significant growth opportunities, expanded customer reach and an even stronger foothold in the fast-growing prestige make-up market.”

‘UNTAPPED OPPORTUNITIES’

On a global basis, make-up has an 18% share of sales at Shiseido, with skincare at 78% and fragrance at 4%. The company wants to change these ratios to 20:70:10 by 2020. In duty free and travel retail the axis split is more balanced at 13:55:32, but less favourable to make-up.

Shiseido says that with Laura Mercier and RéVive it will use its global platform to “accelerate growth in high-potential markets and capitalise on untapped opportunities both in the United States and internationally, including Asia”.

In a statement, Shiseido adds: “Laura Mercier’s classic French elegance and artistry perfectly complement the unique styles and offerings of NARS, bareMinerals, Shiseido and Clé de Peau Beauté. And RéVive, with its use of skincare technologies by focusing on anti-aging, is a terrific fit with Shiseido’s skincare heritage.”

The deal – subject to customary regulatory approvals – will be funded by existing cash and loan facilities and is expected to close in the third quarter of 2016. On closure, SAC expects to rapidly integrate the brands into it’s the regional organisation.