Jun. 3, 2016
Management / Financial Result
Product / Brand
Shiseido Americas Announces Agreement to Acquire Gurwitch Products
Adds Iconic Laura Mercier® Brand and Luxury Skincare Line RéVive® to
Shiseido’s Global Portfolio
Positions Laura Mercier® and RéVive® for Accelerated Growth by Leveraging
Shiseido’s International Footprint, Expertise and Global Centers of Excellence
On June 2, 2016 (June 3, 2016, JST) Shiseido Americas Corporation (“Shiseido Americas”), a subsidiary of Shiseido Company, Limited (“Shiseido”), a leading global cosmetics company, today announced it has signed a definitive agreement with Alticor Inc. (“Alticor”) to acquire its wholly-owned subsidiary Gurwitch Products, LLC (“Gurwitch”), a marketer of global prestige cosmetics and skincare brands. Annual net sales for Gurwitch totaled $175 million in the fiscal year ending 2015.
Under the terms of the agreement, Shiseido Americas will acquire 100% of the membership interests in Gurwitch, including Gurwitch’s portfolio of leading prestige brands: Laura Mercier®, a global brand of prestige color cosmetics, skincare, and body ＆ bath products, and luxury skincare brand RéVive®.
Laura Mercier® and RéVive® are highly complementary to Shiseido’s portfolio of prestige makeup and skincare brands, and the combination is expected to provide Shiseido with significant growth opportunities, expanded customer reach and an even stronger foothold in the fast-growing prestige makeup market. Under the Shiseido corporate umbrella, Laura Mercier® and RéVive® will be able to utilize the company’s robust global platform to accelerate growth in high-potential markets and capitalize on untapped opportunities both in the United States and internationally, including Asia. Laura Mercier® and RéVive® will benefit from Shiseido’s strong commitment to investing in consumer-facing marketing activities and from sharing the collaborative expertise, skillsets, and talent housed within Shiseido’s Global Centers of Excellence for skincare, color cosmetics, and digital and its Americas Innovation Center, in order to drive product development, amplify marketing impact, and increase brand awareness. The brands will also be able to leverage Shiseido’s regional infrastructure in the Americas and shared resources to improve productivity and effectiveness.
Marc Rey, President and Chief Executive Officer of Shiseido Americas, said, “We are thrilled to welcome Laura Mercier and RéVive to the Shiseido family. Both brands have unique viewpoints, fast-growing and loyal customer bases, and the same focus on innovation that defines all of Shiseido’s brands. Laura Mercier’s classic French elegance and artistry perfectly complements the unique styles and offerings of NARS, bareMinerals, Shiseido and clé de peau BEAUTÉ to create a formidable portfolio of prestige makeup. And RéVive, with its proven restorative formulas and use the technologies, is a terrific fit with Shiseido’s skincare heritage. Shiseido is well positioned to generate significant value from this attractive acquisition opportunity, and we are energized to use our regional and global resources to take these brands to the next level and further strengthen our overall position in the marketplace.”
”Shiseido is the perfect home for Gurwitch and these beloved brands at this stage in their trajectory. As part of the Shiseido portfolio, Laura Mercier and RéVive will be able to build upon their impressive growth and successes while introducing their products and techniques to more customers around the world,” said Candace Matthews, who oversees the Gurwitch business and is President of the Americas Region for Amway, an Alticor portfolio company. ”Shiseido has the tools and expertise to help these brands continue to thrive, and shares Gurwitch's unwavering dedication to empowering customers and celebrating individual beauty. I am excited to see what's in store for these brands and their customers as part of the Shiseido organization.”
The acquisition, led by Shiseido Americas, is consistent with Shiseido’s medium-to-long-term strategy VISION 2020 goal to accelerate global growth and the company’s strategy to leverage regional strengths, assets and expertise for global benefit. The transaction is subject to customary regulatory approvals and closing conditions and is expected to close in the third quarter of 2016. Following the close, Shiseido Americas expects to rapidly integrate the new brands into its regional organization.
Summary of Alticor
(1) Company name Alticor Inc.
(2) Content of business Holding company
(3) Establishment 1949
(4) Location Michigan, U.S.A.
(5) Representative Roger Colman
Summary of Gurwitch
(1) Company name Gurwitch Products, LLC
(2) Content of business Distribution of cosmetics under the Laura Mercier® and RéVive® brand names
(3) Establishment 1995
(4) Location Delaware, U.S.A.
(5) Representative Nancy Bernardini
(6) Principle owner and ownership ratio A wholly owned subsidiary of Alticor Inc.
(7) Net sales in FY2015 175 ($in millions)
*The content of the release is correct as of the time of release, but please note that it may in some cases differ from the latest information.