NEW YORK--(BUSINESS WIRE)--Coty Inc. (NYSE:COTY) announced today that it has completed the acquisition of the exclusive long-term global license rights for Burberry Beauty luxury fragrances, cosmetics and skincare.
Camillo Pane, Coty Chief Executive Officer, said, “We are pleased to complete this transaction and move forward with our strategic partnership, combining Burberry’s British heritage of innovation, craftsmanship and design with Coty’s expertise and leadership in luxury beauty products. Coty’s world-class ability in developing and bringing to market beauty brands will help drive a new phase of development and growth for Burberry Beauty."
Edgar Huber, President Coty Luxury, added, “As an iconic luxury brand, Burberry fits perfectly with Coty Luxury’s portfolio, which includes contemporary and globally relevant luxury beauty brands. We are uniquely positioned to develop Burberry Beauty to the next level. This is another significant step in building Coty’s Luxury division.”
Marco Gobbetti, Chief Executive Officer, Burberry, commented: “Following months of hard work to ensure a smooth transition, we are pleased that this strategic partnership, which brings together tremendous beauty experience and expertise, has begun. Burberry is incredibly proud of what has been achieved in the last four years and we look forward, with the support of Coty, to further building on these foundations.”
Coty will have overall responsibility for strategic direction on the portfolio’s development, leveraging its global capabilities in beauty strategy, innovation, supply-chain and go-to-market, working in partnership with Burberry who will lead on creative elements. Burberry beauty products will be sold in leading luxury beauty retailers globally as well as in Burberry stores and digital channels.
About Coty Inc.
Coty is one of the world’s largest beauty companies with approximately $9 billion in pro forma revenue, with a purpose to celebrate and liberate the diversity of consumers’ beauty. Its strong entrepreneurial heritage has created an iconic portfolio of leading beauty brands. Coty is the global leader in fragrance, a strong number two in professional salon hair color & styling, and number three in color cosmetics. Coty operates three divisions - Consumer Beauty, which is focused on mass color cosmetics, mass retail hair coloring and styling products, body care and mass fragrances with brands such as COVERGIRL, Max Factor and Rimmel; Luxury, which is focused on prestige fragrances and skincare with brands such as Calvin Klein, Marc Jacobs, Hugo Boss, Gucci and philosophy; and Professional Beauty, which is focused on servicing salon owners and professionals in both hair and nail, with brands such as Wella Professionals, Sebastian Professional, OPI and ghd. Coty has over 20,000 colleagues globally and its products are sold in over 150 countries. Coty and its brands are committed to a range of social causes as well as seeking to minimize its impact on the environment.
For additional information about Coty Inc., please visit www.coty.com.
Established in 1856, Burberry is a global luxury brand with a distinctive British heritage, built around its core iconic outerwear.
Burberry is headquartered in London. It is listed on the London Stock Exchange (BRBY.L) and is a constituent of the FTSE 100 index.
Visit www.burberryplc.com for further information.
Certain statements in this communication are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Coty Inc.’s (“Coty’s”) current views with respect to, among other things, the consummation of the transactions with Burberry (the “Transactions”), the future performance and expected growth of Burberry Beauty and Coty and its luxury fragrance portfolio, and Coty’s ability to support its planned business operations on a near- and long-term basis. These forward-looking statements are generally identified by words or phrases, such as “anticipate”, “estimate”, “plan”, “project”, “expect”, “believe”, “intend”, “foresee”, “forecast”, “look forward”, “will”, “may”, “should”, “outlook”, “continue”, “target”, “aim” and similar words or phrases. These statements are based on certain assumptions and estimates that Coty considers reasonable and are subject to a number of risks and uncertainties, many of which are beyond the control of Coty, which could cause actual events or results to differ materially from such statements, including, but not limited to:
- Coty’s ability to achieve its global business strategy, compete effectively in the beauty industry and achieve the benefits contemplated by the transaction with Burberry within the expected time frame;
- managerial, integration, operational, regulatory, legal and financial risks and expenses associated with Coty’s strategic transactions and internal reorganizations generally and the Transactions specifically;
- Coty, its other brand partners and licensors’, and Burberry’s ability to obtain, maintain and protect their respective intellectual property rights, including trademarks, brand names and other intellectual property used in their respective businesses and products and Burberry Beauty and their abilities to protect their respective reputations and defend claims by third parties for infringement of intellectual property rights;
- the distribution and sale by third parties of counterfeit and/or gray market versions of Coty’s products and Coty’s effectiveness in reducing such distribution and sale;
- Coty’s and Burberry’s ability to anticipate, gauge and respond to market trends and consumer preferences, which may change rapidly, and the market acceptance of new products;
- Coty’s ability to manage seasonal variability;
- the integration of The Procter & Gamble Company’s global fine fragrances, salon professional, cosmetics and retail hair color businesses along with select hair styling brands with Coty’s legacy business, operations, systems, financial data and culture and the ability to realize synergies and other potential benefits within the time frames currently contemplated;
- changes in law, regulations and policies that affect Coty’s business or products;
- Coty’s ability to successfully execute its announced intent to divest or discontinue non-core brands and to rationalize wholesale distribution by reducing the amount of product diversion to the value and mass channels;
- risks related to Coty’s international operations and joint ventures, including reputational, compliance, regulatory, economic and foreign political risks;
- Coty’s dependence on certain licenses, entities performing outsourced functions and third-party suppliers, including third party software providers;
- administrative, development and other difficulties in meeting the expected timing of market expansions, product launches and marketing efforts;
- global political and/or economic uncertainties or disruptions;
- increased competition, consolidation among retailers, shifts in consumers’ preferred distribution channels and other changes in the retail, e-commerce, and wholesale environment in which we do business and sell our products;
- disruptions in operations, including due to disruptions or consolidation in supply chain, manufacturing rights or information systems, labor disputes and natural disasters; and
- Coty’s ability to attract and retain key personnel.
More information about potential risks and uncertainties that could affect the Coty’s business and financial results is included under the heading “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Coty’s Annual Report on Form 10-K for the fiscal year ended June 30, 2017 and other periodic reports Coty has filed and may file with the SEC from time to time.
All forward-looking statements made in this communication are qualified by these cautionary statements. These forward-looking statements are made only as of the date of this communication, and Coty does not undertake any obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise.