Coty to acquire philosophy
Beauty giant continues shopping spree with bolster to prestige division
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 and is a regular winner of beauty industry awards.
"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."
"philosophy is a perfect fit with Coty. We have a common focus on innovation, passion for brand development and entrepreneurial culture, and highly complementary brands," added Michele Scannavini, president, Coty Prestige. "We believe the brand still has significant growth potential in the US and tremendous opportunities in the international markets."
Ken Stevens, ceo, philosophy inc commented: "philosophy's success is driven by providing women with products that deliver results and inspiration. 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. 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, md of The Carlyle Group. "We recognize 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."
The deal is reportedly worth about $1bn, though financial terms have not been disclosed. It is subject to the usual regulatory approvals and is expected to close in December 2010.