Coty Inc. to Acquire Philosophy and OPI
In the past week, Coty Inc., a global beauty company, announced two acquisitions that would siginificantly strengthen its footprint in the HBA market
On Nov. 23, 2010, Coty agreed to acquire philosophy, inc., a premier skincare and cosmetics company, from The Carlyle Group, a global alternative asset manager.
The acquisition of philosophy will allow Coty to further diversify and expand its Coty Prestige division, which will manage the philosophy portfolio. philosophy is a beauty brand focused on skin care, with an important presence in bath and body.
Founded in 1996, philosophy has created a strong emotional connection with its consumer, thanks to the unique combination of brand approachability and product performance. The philosophy product line, which is sold in QVC, Sephora, Ulta, Nordstrom and other premier retailers, is expected to generate sales of more than $200 million in 2010 and consistently earns top beauty industry awards.
Just five days later, the beauty giant announced another addition to its brand portfolio, entering an agreement to acquire OPI. This latest acquisition will enhance Coty's color cosmetic portfolio, through the addition of more than 200 fashion forward colors of OPI Nail Lacquer's chip-resistant formula, which has been an international success.
"We view the acquisition of OPI as complementary to Coty and a natural extension of our strategy to offer a unique portfolio of brands that produce some of the best known consumer products around the world," says Bernd Beetz, CEO, Coty Inc. "OPI is both dynamic and high quality and has earned its place as a leading provider to professional nail care salons. This acquisition will allow Coty to expand our presence in the nail care category via an important new channel of distribution: professional salons, and importantly will offer an even greater selection of products and choice to consumers."
Financial terms of both transactions were not disclosed and are also subject to customary regulatory approvals.