Bare Escentuals, Inc. today announced it has signed a non-binding letter of intent to purchase U.K.-based Cosmeceuticals Limited, which distributes Bare Escentuals' bareMinerals, MD Formulations and MD Forte brands to the European cosmetics market. Terms of the transaction were not disclosed.
Consistent with Bare Escentuals' goal of distributing directly in key international markets, the acquisition positions Bare Escentuals to control its existing distribution in the U.K. to QVC U.K. as well as to over 1,500 spa accounts. Longer term, the Company expects that the acquisition will allow Bare Escentuals to enter new sales channels in the U.K. including infomercials, web/catalog and premium wholesale, and provide an opportunity to more efficiently expand its presence in the broader European market.
Cosmeceuticals Limited will divest assets not related to the distribution of Bare Escentuals' brands prior to completion of the transaction.
The parties intend to complete the transaction on or around April 2, 2007, subject to due diligence and approval by Bare Escentuals' Board of Directors, which would allow for product sales and shipments to begin during Bare Escentuals' second fiscal quarter.