Bare Escentuals buys UK distributor as part of growth plans

By Simon Pitman

- Last updated on GMT

Riding a significant rise in demand for its mineral-based cosmetic
products in the US market, Bare Escentuals is eyeing expansion in
overseas markets, supported by its acquisition of a UK distributor.

The company says it plans to acquire Cosmeceuticals Limited, which currently distributes Bare Escentuals products throughout the country to QVC UK - an online and television retail business.

The deal is currently awaiting approval from trading authorities and the companies have not revealed the exact terms of the deal, which was given preliminary confirmation after a letter of intent was signed on Wednesday.

Cosmeceuticals Limitied says that it will divest assets not related to the distribution of Bare Escentuals' brands prior to completion of the transaction.

Completion of the contract is expected to be made by April 2, allowing Bare Escentuals to add the business trading to its results for the second quarter.

Bare Escentuals said that, by making the acquisition, it is hoping to expand into new sales channels in the UK, including the fast-growing informercials segment.

The company also has 1,500 accounts with UK-based spas, which it is also helping to build on through the distribution acquisition.

Ultimately the company plans to tap into significant growth in the UK, which is currently the leading market in Europe for natural- and organic-based personal care products.

Organic Montior estimates that sales of natural and organic personal care products doubled between 2002 and 2005 in the UK, helping to make it one of the largest markets in Europe, where annual sales are currently estimated to be €1bn.

Last week the company reported that quarterly net sales for 2006 hit $110.5m, compared to total sales of $703m recorded in the same period last year, while quarterly net income increased from $4.8m in 2005 to reach $16.3m.

The strong results came in the company's first full quarter as a public company, having listed itself on the Nasdaq Stock Market back in September 2006.

Share prices responded positively to the announcement, jumping $1.20 to reach $35.99.

For the full year net sales were $394.5m, representing an increase of 53 per cent on the figures for 2005, whereas net income was $50.2m, more than doubling the $23.9m achieved in 2005.

The San Francisco-based company, which markets natural, mineral-based cosmetic and skin care products throughout the United States, beat its own forecasts and said that it was raising 2007 profit guidance as a result, hoping to raise net income by around 5 per cent in 2007.

Related news

Show more

Related products

show more

Get up to $500 off IGEN™ Non-GMO Tested Program!

Get up to $500 off IGEN™ Non-GMO Tested Program!

Content provided by SGS Nutrasource | 04-Jul-2024 | Insight Guide

The cosmetics industry has seen unprecedented growth in recent years, and with this growth comes a rising concern for what’s inside our everyday products.

Exosomes: Passing Trend or Transformative Reality?

Exosomes: Passing Trend or Transformative Reality?

Content provided by Naolys | 26-Mar-2024 | White Paper

Exosomes, microscopic vesicles naturally present in abundance within Plant Cells, have garnered significant attention within the scientific and cosmetic...

How Nutricosmetics Can Enhance Skin Beauty

How Nutricosmetics Can Enhance Skin Beauty

Content provided by Activ'Inside | 11-Dec-2023 | White Paper

In the ever-evolving realm of nutricosmetics, where inner wellness meets outer beauty, few natural ingredients have captured the spotlight quite like grapes.

Related suppliers