Unilever Cosmetics International (UCI) which owns the perfume licenses for Calvin Klein, Cerruti, Vera Wang, Chloe and Lagerfeld, is selling its global prestige fragrance business to Coty Inc. for $800 million.
“Today’s acquisition represents an important further step in the transformation of Coty that began in 2001,” said Coty CEO 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 United States, while giving Coty an even greater presence in Europe and a much stronger foothold in Asia.
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’s purchase of UCI is expected to be completed within the coming months, pending regulatory approvals and normal consultative procedures. Coty will be one of theworld’s leading fragrance companies.
Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
