Boston-based Berkshire Partners and Rhône, based in New York and London, are the two investing parties and each will be represented on the Coty’s Board of Directors.
“This mutually beneficial agreement allows Coty to continue its accelerated growth path organically and externally around the globe,” said Bernd Beetz, CEO of Coty.
Rhône managing director M. Steven Langman commented that Coty’s established position as a leader in global fragrance, skin care, and beauty sectors, as well as its diversity of consumer brands that make it an appealing investment.
“Rhône is excited to be partnering with Coty, its management team and its shareholders in this transaction and to support Coty in the realization of its strategic plans,” he added.
Brand connection with consumer
Berkshire managing director Brad Bloom added his firm’s support for the future saying that the heritage culture and brand connection with consumers should lead to a sustained period of growth for the company.
“By bringing these partners on board, Coty will be in a stronger position to prepare for future and larger acquisitions while maintaining the culture that makes Coty such a unique place in the beauty industry,” Beetz added.
2010: the year of the acquisition
2010 was a busy year for Coty with several strategic acquisitions announced in the latter months.
Nail care company OPI, skin care companies TJoy, philosophy, and Dr. Scheller Cosmetics, as well as Calvin Klein color cosmetics were all acquired by the beauty firm.
Speaking at the end of last year, a Coty spokesperson told CosmeticsDesign.com USA that the company expects further growth to continue through 2011, stating its aggressive strategy has always been to grow organically and externally, moving beyond fragrance and expanding further into the skin care and color category.
With the aid of further investment, Coty’s plan outlined for this year is to continue to expand in key emerging markets including Brazil Russia, India and China, which Coty says is because collectively BRIC makes up almost one-fifth of the world beauty market or equivalent in size to the American beauty market.