Updated from 12:22 a.m. EST

TOKYO ( TheStreet) -- Japanese cosmetics company Shiseido has agreed to acquire Bare Escentuals ( BARE) for about $1.7 billion.

Shiseido will pay $18.20 a share for all the outstanding share of Bare Escentuals, a U.S. cosmetics concern. The price is a premium of 43% over Bare Escentual's closing price Thursday of $12.74.

A tender offer for Bare Escentuals is expected to begin within 10 business days and is expected to close during the first quarter. The board of both companies have approved the transaction.

Bare Escentuals will operate as a separate division of Shiseido and its brands will continue to be managed by current management, including CEO Leslie Blodgett. Bare Escentuals' brands like bareMinerals and Buxom are sold in the U.S. at department stores and specialty retailers.

-- Reported by Joseph Woelfel in New York.

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