Coty has today (7 October) submitted a binding offer to acquire the Bourjois cosmetics brand from Chanel for 15 million Class A Coty shares. Chanel has in turn agreed to enter into exclusive negotiations.
The Bourjois colour cosmetics portfolio is sold through approximately 23,000 points of sale in more than 50 countries around the world, enjoying leading positions in certain key markets, such as Western Europe, the Middle East and Asia.
“We are looking forward to having the Bourjois brand as part of our portfolio of leading beauty products, as well as welcoming Chanel as a Coty shareholder,” noted Coty Chairman and Interim CEO Bart Becht. “Bourjois’ brands are highly complementary to Coty’s existing colour cosmetics portfolio. Additionally, the company’s strong heritage, quality image and leadership positions in a number of Western European countries where Coty is seeking to bolster its presence, provide a great opportunity for Coty to further strengthen its leadership position in the large and growing colour cosmetics category.”
“We are excited about the potential opportunities that joining with Coty could present for Bourjois,” said Chanel spokesman Michael Rena. “Coty and Bourjois share a passion for colour cosmetics and together they would have strong potential to further advance their leadership in this attractive global category. We intend to examine the offer in more detail and enter constructive talks with Coty.”
The proposal is subject to customary closing conditions, including regulatory clearances.
