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Coty CEO Bernd Beetz: “Philosophy is one of the beauty industry’s most prestigious brands and a fantastic addition to the Coty family.” |
US. Coty Inc is to acquire skincare company Philosophy from The Carlyle Group, a global alternative asset manager. The purchase will allow Coty to further diversify and expand its Coty Prestige division, which will manage the Philosophy portfolio.
Founded in 1996, the Philosophy brand’s focus is on skin care, with an important presence in bath and body. The product line – sold in QVC, Sephora, Ulta, Nordstrom and other premier retailers, is expected to generate sales of more than US$200 million in 2010 and consistently earns top beauty industry awards.
“Philosophy is one of the beauty industry’s most prestigious brands and a fantastic addition to the Coty family,” noted Coty CEO Bernd Beetz. “This acquisition will allow Coty to strengthen its presence in the skincare category, which is one of our key strategic objectives.”
“Philosophy is a perfect fit with Coty,” added Coty Prestige President Michele Scannavini. “We have a common focus on innovation, passion for brand development and entrepreneurial culture, and highly complementary brands. We believe [Philosophy] still has significant growth potential in the US and tremendous opportunities in the international markets.”
“Philosophy’s success is driven by providing women with products that deliver results and inspiration,” commented Philosophy CEO Ken Stevens. “We thrive on innovation and are extremely excited to join Coty, a company that shares our passion for delighting consumers with superior products. We look forward to significant growth as part of the Coty global portfolio of brands.”
He concluded: “I am grateful for the wise counsel and confident support that Sandra Horbach and the Carlyle team always provided to me in the running of this business.”
“Philosophy has achieved great success under our ownership thanks to the hard work of Ken Stevens, his management team and Philosophy’s many devoted associates,” said Sandra Horbach, Managing Director of The Carlyle Group. “We recognise and thank Philosophy founder Cristina Carlino for creating this unique brand and for her years of dedication to the company. Coty is an outstanding partner for Philosophy, and we wish them continued success.”
Financial terms of the transaction were not disclosed. The deal is subject to customary regulatory approvals and is expected to close in December 2010.
