Coty announced plans to acquire Burberry's global licence rights for £130m in April
Coty has now formally added Burberry Beauty to its portfolio, announcing today the acquisition of the global licence rights has officially closed.
The global beauty conglomerate announced in April that it planned to buy the rights for Burberry Beauty’s fragrances, cosmetics and skin care for £130m.
The cash deal means Coty is now responsible for the development, manufacture and distribution of the full range of Burberry Beauty products globally.
Burberry has expanded further into cosmetics in recent years, with the launch of its skin care line in 2015 and new fragrance Mr. Burberry in 2016.
Last year the brand acknowledged it was struggling against competitors, announcing that former CEO and CCO Christopher Bailey had taken a 75% pay cut from £7.5m in 2014 to £1.9m in 2015.
Josh Whitehouse was named the new face of Mr. Burberry this year
The new deal with Coty is expected to boost Burberry’s disappointing beauty sales.
Camillo Pane, CEO of Coty, said “Coty’s world-class ability in developing and bringing to market beauty brands will help drive a new phase of development and growth for Burberry Beauty."
The deal is described as ‘long-term’ by Coty, although it did not disclose the exact length or agreed end-date.
Marco Gobbetti, CEO of Burberry, added: “Following months of hard work to ensure a smooth transition, we are pleased that this strategic partnership, which brings together tremendous beauty experience and expertise, has begun.
“Burberry is incredibly proud of what has been achieved in the last four years and we look forward, with the support of Coty, to further building on these foundations.”