The last month or so has seen Coty announce agreements to acquire professional nail colour company OPI, cosmetics group Dr Scheller and premium skin care company philosophy, as well as announce a partnership with Calvin Klein to develop and market a full make-up line, due to launch in 2012...
The last month or so has seen Coty announce agreements to acquire professional nail colour company OPI, cosmetics group Dr Scheller and premium skin care company philosophy, as well as announce a partnership with Calvin Klein to develop and market a full make-up line, due to launch in 2012.
The addition of fashion forward OPI Nail Lacquers and Nicole by OPI to a growing colour cosmetics portfolio [the company already owns Rimmel, Astor, Esprit and Sally Hansen] gives Coty access to the important professional salon distribution channel. The management team will remain with the brand. Financial terms of the transaction have not been disclosed and the transaction is subject to customary regulatory approvals.
Coty is buying premium skin care and bath and body company philosophy from global alternative asset manager The Carlyle Group in a deal reportedly worth about $1bn. Founded in 1996, philosophy has a strong emotional connection with consumers, with products like hope in a jar combining brand approachability and performance. The line is expected to generate sales of over $200m in 2010. “philosophy is one of the beauty industry’s most prestigious brands and a fantastic addition to the Coty family,” said Bernd Beetz, ceo, Coty Inc. “This acquisition will allow Coty to strengthen its presence in the skin care category, which is one of our key strategic objectives.” Subject to regulatory approvals, this deal is expected to close this month.
Coty is buying Russian cosmetics company Kalina’s shares of the German Dr Scheller Cosmetics business which includes the Manhattan and Manhattan Clearface brands. However Kalina has retained ownership of the Dr Scheller Das Naturkonzept line which it plans to expand. “Its well established brand, high quality products, market presence and loyal consumers will complement and add value to Coty’s existing offering,” said Beetz.
Calvin Klein’s colour business was previously licensed to Markwins Holding Co, but following the agreement with Phillips-Van Heusen Corporation, of which Calvin Klein Inc is a wholly owned subsidiary, this passes to Coty. Coty acquired the fragrance business in 2005, but at the time the colour license was not available.