NEW YORK, Nov. 23, 2010 /PRNewswire/ -- Coty Inc., a leading global beauty company and philosophy, inc., a premier skincare and cosmetics company, today announced that Coty has agreed to acquire philosophy 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.
"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 skincare 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," said Michele Scannavini, President, Coty Prestige. "We believe the brand still has significant growth potential in the US and tremendous opportunities in the international markets."
"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," said Ken Stevens, CEO, philosophy, inc. He added, "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, Managing Director 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."
Financial terms of the transaction were not disclosed. The transaction is subject to customary regulatory approvals and is expected to close in December 2010.
Blackstone Advisory Partners served as financial advisor to Coty in connection with the transaction. Goldman Sachs & Co. acted as financial advisor to philosophy. Gibson, Dunn & Crutcher LLP served as legal advisor to Coty in the transaction. Latham & Watkins LLP served as legal advisor to philosophy.
About Coty Inc.
Coty was created in Paris in 1904 by Francois Coty who is credited with founding the modern fragrance industry.
Today, Coty Inc. is a recognized leader in global beauty with annual net sales of nearly $4 billion. Driven by an entrepreneurial spirit, passion, innovation and creativity, Coty Inc. has developed an unrivaled portfolio of notable brands and delivers its innovative products to consumers in 90 markets worldwide.
The Coty Prestige brand portfolio is distributed in prestige and ultra-prestige stores and includes Balenciaga, Bottega Veneta, Calvin Klein, Cerruti, Chloe, Chopard, Davidoff, Jennifer Lopez, Jil Sander, JOOP!, Karl Lagerfeld, Kenneth Cole, L.A.M.B. fragrance by Gwen Stefani, La Voce by Renee Fleming, Lancaster, Marc Jacobs, Nikos, Sarah Jessica Parker, Vera Wang, Vivienne Westwood and Wolfgang Joop.
The Coty Beauty brand portfolio is more widely distributed and includes adidas, ASTOR, Baby Phat, Beyonce Knowles, Celine Dion, Chupa Chups, David and Victoria Beckham, Esprit, Exclamation, Faith Hill, GUESS, Halle Berry, Jovan, Kate Moss, Kylie Minogue, La Cross, Lady Gaga, Miss Sporty, Nautica, N.Y.C. New York Color, Pierre Cardin(1), Playboy, Rimmel, Sally Hansen, Stetson, Tim McGraw, and Tonino Lamborghini.
Coty and Puig Fashion and Beauty S.A. have a strategic partnership for the distribution of the perfume lines of Nina Ricci, Carolina Herrera, Prada, Paco Rabanne, and Antonio Banderas in the United States and Canada.
For additional information about Coty Inc., please visit www.coty.com.
(1) Not available in North America
about philosophy, inc.
philosophy is a brand that approaches personal care from a skin care point of view, while celebrating the beauty of the human spirit. our products, which include hope in a jar, purity made simple, amazing grace, microdelivery peel and miracle worker, are formulated with scientifically-proven ingredients and technologies. philosophy was founded in 1996 and is headquartered in phoenix, arizona, usa.
SOURCE Coty Inc.