Coty, Inc. leading cosmetics company will acquire Bourjois from renowned company CHANEL for $15 million Coty shares.
Coty, Inc. and CHANEL have announced that Coty will acquire the Bourjois cosmetics brand from CHANEL for 15 million Class A Coty shares. The world renowned cosmetics and fashion company CHANEL has agreed to enter into exclusive negotiations. This a binding offer to buy the Bourjois cosmetics brand from Chanel for 15 million Coty shares is worth about $239 million.
Bourjois was founded in 1863 by French actor Joseph-Albert Ponsin, who developed a line of color cosmetics for his fellow actors. Since then, the Bourjois’ portfolio of color cosmetic products is available all over the world from approximately 23,000 points of sale in more than 50 countries. Bourjois has enjoyed leading positions in some of the most attractive markets for color cosmetics, such as Western Europe, the Middle East and Asia.
Bart Becht, Chairman and Interim CEO of Coty Inc. mentioned in a special interview “We are looking forward to having the Bourjois brand as part of our portfolio of leading beauty products, as well as welcoming CHANEL as a Coty shareholder.” He added “Bourjois’ brands are highly complementary to Coty’s existing color cosmetics portfolio. Additionally, the company’s strong heritage, quality image and leadership positions in a number of Western European countries where Coty is seeking to bolster its presence, provide a great opportunity for Coty to further strengthen its leadership position in the large and growing color cosmetics category.”
On the other hand, Michael Rena, CHANEL’S Representative cited in his exclusive interview about the transaction “We are excited about the potential opportunities that joining with Coty could present for Bourjois.” Mr. Rena added “Coty and Bourjois share a passion for color cosmetics and together they would have strong potential to further advance their leadership in this attractive global category. We intend to examine the offer in more detail and enter constructive talks with Coty.”
The proposal is subject to customary closing conditions. These include regulatory clearances and the relevant employee representative bodies will be consulted prior to entering into a definitive agreement.
Mr. Bart Becht also mentioned that this acquisition would significantly help his company bolster its presence in Western Europe. Mr. Rena understands the superiority of Coty and that together with the Bourjois brand will create a new leader in color cosmetics considering that the two brands share the same passion to do so.
More details of the transaction between Coty, Inc. and CHANEL will be announced later as the agreement becomes final between the two companies.
About Coty, Inc.
Coty, Inc. is a global beauty products manufacturer founded in Paris, France by François Coty in 1904. Its main products are fragrances, color cosmetics and skin & body care products. Coty is known for its collaboration with designers and celebrities in the creation of fragrances.Coty’s manufacturing facilities are located in Ashford, UK; Granollers, Spain; Chartres, France; Monaco; Jiangsu Province, China; Sanford, North Carolina, Los Angeles, California, Phoenix, Arizona, USA. Coty, Inc. stock market evolution: http://www.nasdaq.com/symbol/coty
About Bart Becht
Lambertus Johannes Hermanus “Bart” Becht is a Dutch businessman. Mr. Becht is the former CEO of Reckitt Benckiser, a company he headed since its creation in 1999 through the merger of Benckiser with Reckitt & Colman. Becht studied economics at the University of Groningen, Netherlands and took an MBA at Rotterdam School of Management, Erasmus University and the University of Chicago. He joined the Benckiser side of the business in 1988, following a career at Procter & Gamble. He retired as CEO of Reckitt Benckiser on 31 August 2011, and was replaced by Rakesh Kapoor.
Chanel S.A. is a French, privately held company owned by Alain and Gerard Wertheimer, grandsons of Pierre Wertheimer, who was an early business partner of the couturière Gabrielle Bonheur Chanel. Chanel S.A. is a high fashion house that specializes in haute couture and ready-to-wear clothes, luxury goods and fashion accessories. In her youth, Gabrielle Chanel gained the nickname Coco from her time as a chanteuse. As a fashion designer, Coco Chanel catered to women’s taste for elegance in dress, with blouses and suits, trousers and dresses, and jewellery of simple design that replaced the opulent, over-designed, and constrictive clothes and accessories of 19th-century fashion. The Chanel product brands such as perfumes, cosmetics, jewelry and accessories have been personified by fashion models, celebrities and actresses, including the following beautiful women: Inès de la Fressange, Catherine Deneuve, Carole Bouquet, Vanessa Paradis, Nicole Kidman, Anna Mouglalis, Lucía Hiriart, Hope Portocarrero, Audrey Tautou, Keira Knightley and Marilyn Monroe.
About Michael Rena
Michael Rena is a representative and global CAO and President at CHANEL SRL.