US. Coty Inc announced yesterday that it has entered into a definitive agreement to purchase the global prestige fragrance business of Unilever for US$800 million.
Unilever Cosmetics International (UCI) owns the perfume licenses for Calvin Klein, Cerruti, Vera Wang, Chloe and Lagerfeld. Upon closing of the transaction, Coty will become one of the world’s leading fragrance companies.
“Today’s acquisition represents an important further step in the transformation of Coty that began in 2001,” said Coty Chief Executive Officer Bernd Beetz. “Over the last several years, Coty’s success with fashion, celebrity and lifestyle fragrances has enabled us to grow when most of our industry has been flat or shrinking. We are now entering a new phase in which we will greatly expand our presence in the market for prestige and ultra-prestige brands on a global basis.”
Beetz added: “In addition to making Coty a leading player in a highly-fragmented industry, this acquisition will move us closer to our longer-term goal of being among the top five beauty companies in the world.”
In addition to the perfume licenses, Coty will acquire a manufacturing and distribution center in Mt. Olive, New Jersey and a distribution center in Lille, France. As part of the agreement, Coty may make further deferred payments to Unilever contingent upon the future sales performance.
The new fragrances will become part of Lancaster Group Worldwide, the prestige division of Coty, which is led by Michele Scannavini, President, Lancaster Group Worldwide.
The acquisition advances the Lancaster Group’s strategy to increase sales in the US, while giving Coty an even greater presence in Europe and a much stronger foothold in Asia.
Along with its presence in the prestige and ultra-prestige market, Coty is a leading company for mass fragrances such as adidas and “˜masstige’ brands such as Celine Dion.
Beetz concluded: “With the addition of UCI’s prestige brands, we will have some true `blockbusters` in the Coty family. Our goal will be to leverage our formula for success in further building the appeal of these brands on a world platform.”
Coty expects to complete the purchase of UCI within the coming months, pending regulatory approvals and normal consultative procedures.
About Coty Inc
Coty Inc is one of the world’s largest and most successful beauty companies with sales of US$2 billion in 2004. Its portfolio spans the three core categories of fragrance, color cosmetics and skincare in the prestige, mass and masstige distribution sectors.
Coty Beauty, the mass and masstige division, markets brands such as adidas, the healing garden, Rimmel, Calgon, Celine Dion, Stetson, Jovan, Aspen, Isabella Rossellini, Astor, Esprit, mary-kateandashley, Miss Sixty, Shania Twain and David and Victoria Beckham.
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