Notice of Transfer of Prestige Makeup Brands bareMinerals, BUXOM, and Laura Mercier

Shiseido Company, Limited (the “Company”) hereby announces that Shiseido Americas Corporation, the Company’s regional headquarters for the Americas and its consolidated subsidiary (headquartered in Delaware, United States; “SAC”) has determined to sell the related assets of prestige makeup brands bareMinerals, BUXOM, and Laura Mercier (including shares of a SAC’s subsidiary; the “Transfer”) to an entity owned by independent private equity partnership Advent International (headquartered in Massachusetts, United States; “Advent”) pursuant to the terms of an Asset Purchase Agreement (the “Agreement”) which SAC entered into on August 25 (August 26, Japan time), 2021.
Regarding the transfer of the French business related to the brands and all its employees to Advent, a final decision will be made after completion of the information and consultation processes with employee representatives, in alignment with French labor law.

Under its medium-to-long-term business strategy “WIN 2023 and Beyond,” the Shiseido Group is shifting to a new business structure, with skin beauty positioned as its core category. To that end, we have launched a fundamental business transformation and aim to become a global leader in skin beauty by 2030. Amid an extremely volatile business environment, mostly impacted by the spread of COVID-19, we are making steady progress as we focus on profitability and cash-flow management in the three years from 2021 to 2023, in order to solidify the business foundation required for a global Skin Beauty Company.
As we are taking steps to prioritize our brands, optimize our portfolio, and strengthen our competitive advantages under this strategy, we have decided to transfer the business of three of the Company’s makeup brands—bareMinerals and BUXOM, acquired in 2010, and Laura Mercier, acquired in 2016—to an external party. The transfer of the brands’ employees to the new owner along with the businesses is an important consideration and factor in this transaction.
Among the numerous interested contenders, we have concluded that Advent, a private equity partnership founded in 1984 with proven expertise in consumer products, will provide optimal support for further global growth and success of the brands through marketing investment and a high level of professionalism in business expansions, and have reached an agreement on the Transfer.
The Company will reinvest the funds obtained from the Transfer into areas crucial 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. Through these investments, the Company will solidify its foundation to ensure business continuity in the new normal during and after the COVID-19 pandemic and achieve growth required for complete recovery by 2023, aiming to “Be a Global Winner with Our Heritage.”

Overview of the Transfer
This transaction will be executed through a transfer of all related assets of the three brands (including all shares of Bare Escentuals K.K. (Japan), a wholly owned subsidiary of SAC and the operating company of bareMinerals in Japan; “Bare Japan”) (the “Related Assets”) to Advent.
A final decision to transfer the French business and all its employees will be made after completion of the consultation processes with employee representatives, in alignment with French labor law.

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