Shiseido to buy US cosmetics firm

Tokyo - Japanese cosmetics giant Shiseido has agreed to acquire San Francisco-based Bare Escentuals for $1.7bn.

Shiseido will offer to buy all outstanding shares of the company for $18.20 a share, which represents a 43% premium over Bare Escentuals' closing price on the Nasdaq on Thursday.

Bare Escentuals will operate as a separate division of Shiseido under its current leadership, Shiseido says. The 34-year-old company is known for its bareMinerals cosmetics brand sold in US department stores and specialty retailers.

"Together with Shiseido, we look forward to bringing our mineral-based beauty products to even more women worldwide," says Bare Escentuals CEO Leslie Blodgett.

Shiseido wants to expand its global reach and President Shinzo Maeda says the purchase represents an important step.

- AP