NEW YORK--(BUSINESS WIRE)--Nov. 21, 2016--
Coty Inc. (NYSE:COTY) announced today that it has completed the
acquisition of ghd, a global premium brand in high-end hair styling
appliances, further strengthening Coty’s worldwide leading position in
professional hair care. The acquisition is expected to be immediately
accretive to Coty’s earnings.
Camillo Pane, Coty Chief Executive Officer, said, “We are excited to
welcome the ghd company to Coty. The addition of ghd, with their
state-of-the-art hair appliances further strengthens our Coty
Professional Beauty division, providing us with a strong foothold in an
adjacent, complementary category. We look forward to continuing to grow
and nurture ghd internationally as Coty strives to become a global
industry leader by being a clear challenger in beauty.”
ghd will become part of the Coty Professional Beauty division, where it
will be managed as a standalone business led by its current CEO Anthony
Davey and management team. Anthony Davey will report to Sylvie Moreau,
President of Coty Professional Beauty. The company has international
operations in Europe, Australia, South Africa, and the USA. ghd products
are sold through salons, in premium retail and through e-commerce. It is
the number one stylist-recommended and number one consumer-preferred
styler brand in all of its key markets.
About Coty Inc.
Coty is one of the world’s largest beauty companies with approximately
$9 billion in 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 – Coty Consumer Beauty, which is focused on color
cosmetics, retail hair coloring and styling products, body care and mass
fragrances sold primarily in the mass retail channels with brands such
as COVERGIRL, Max Factor and Rimmel; Coty Luxury, which is focused on
prestige fragrances and skincare with brands such as Calvin Klein, Marc
Jacobs, Hugo Boss, Gucci and philosophy; and Coty Professional Beauty,
which is focused on servicing salon owners and professionals in both
hair and nail, with brands such as Wella Professionals, Sebastian
Professional and OPI. Coty has approximately 20,000 colleagues globally
and its products are sold in over 130 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.
About ghd
Good Hair Day, better known as ghd, is a global premium, electrical
styling brand that is in the business of transforming the lives of women
everywhere so that they can look and feel beautiful every day.
Game-changing innovation, cutting-edge technology, superior performance
and award-winning design are all hallmarks of the brand. Founded in 2001
by three British hairdressers, ghd straighteners were originally
developed exclusively for professional stylists and quickly developed a
cult following among professionals, consumers and celebrities alike.
Based in the UK, the company has international operations in Europe,
Australia, South Africa, and the USA. Today, ghd is a multi-category,
multi-channel brand with a range of stylers, hairdryers and curling
tongs, and is the number one stylist-recommended and number one
consumer-preferred brand in all of its key markets. For more
information, please visit www.ghdhair.com.
Forward-Looking Statements
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
(the “Company”) current views with respect to, among other things, the
Company’s future operations and financial performance, expected growth,
the Company’s ability to support its planned business operations on a
near- and long-term basis, the acquisition of ghd and synergies or
growth from the acquisition of ghd. These statements are based on
certain assumptions and estimates that the Company considers reasonable.
These forward-looking statements are generally identified by words or
phrases, such as “anticipate”, “estimate”, “plan”, “project”, “expect”,
“believe”, “intend”, “foresee”, “forecast”, “will”, “may”, “should”,
“outlook”, “continue”, “target”, “aim” and similar words or phrases.
Reported results should not be considered an indication of future
performance, and actual results may differ materially from the results
predicted due to risks and uncertainties including:
-
the Company’s ability to achieve its global business strategy and
compete effectively in the beauty industry, including successfully
leveraging growth opportunities and addressing challenges inhibiting
growth in its brand portfolio;
-
the integration related to the acquisition (the “Transactions”) of The
Procter & Gamble Company’s (“P&G”) global fine fragrances, salon
professional, cosmetics and retail hair color businesses, along with
select hair styling brands (the “P&G Beauty Brands”) with the
Company’s business, operations and culture and the ability to realize
synergies and other potential benefits of the Transactions within the
time frames currently contemplated, including planned organizational
changes and their effects, diversion of management attention from
existing core businesses and the impact of recent changes in
management teams in the Company’s headquarters, regions and countries;
-
the Company’s ability to anticipate, gauge and respond to market
trends and consumer preferences, which may change rapidly, and the
market acceptance of new products;
-
the Company’s ability to identify suitable acquisition targets and
managerial, integration, operational, regulatory and financial risks
associated with those acquisitions, including its acquisitions of
Bourjois, Beamly, Hypermarcas S.A., the P&G Beauty Brands and ghd,
including risks related to litigation or investigations involving
governmental authorities relating to any acquisition and the ability
of the Company to achieve the benefits contemplated by any proposed
transaction within the expected time frame;
-
risks associated with acquisitions or other strategic transactions,
including acquired liabilities and restrictions, retaining customers
from businesses acquired, achieving any expected results or synergies
from acquired businesses, complying with new regulatory frameworks,
difficulties in integrating acquired businesses or implementing
strategic transactions generally and risks associated with
international acquisition transactions, including in countries where
the Company does not currently have a material presence;
-
risks related to the Company’s international operations, including
reputational, regulatory, economic and foreign political risks, such
as the political instability in Eastern Europe and the Middle East,
the debt crisis and the economic environment in Europe, including any
potential impact of Brexit, and fluctuations in currency exchange
rates;
-
dependence on certain licenses, entities performing outsourced
functions and third-party suppliers;
-
the Company, including ghd, its brand partners' and licensors' ability
to obtain, maintain and protect the intellectual property rights used
in its products and their abilities to protect their respective
reputations;
-
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,
including a general economic downturn, a sudden disruption in business
conditions affecting consumer purchases of the Company’s products and
volatility in the financial markets;
-
the Company’s ability to manage seasonal variability;
-
consolidation among retailers, shifts in consumers’ preferred
distribution channels, and other changes in the retail environment in
which the Company sells its products;
-
disruptions in operations;
-
increasing dependency on information technology and the Company's
ability to protect against service interruptions, data corruption,
cyber-based attacks or network security breaches, costs and timing of
implementation and effectiveness of any upgrades to its information
technology systems and failure by the Company to comply with any
privacy or data security laws or to protect against theft of customer,
employee and corporate sensitive information;
-
changes in laws, regulations and policies that affect the Company’s
business or products;
-
the Company’s ability to attract and retain key personnel;
-
use of estimates and assumptions in preparing the financial
statements, including with regard to revenue recognition, the market
value of inventory and the fair value of acquired assets and
liabilities associated with acquisitions;
-
market acceptance of new product introductions;
-
the illegal distribution and sale by third parties of counterfeit
versions of the Company’s products; and
-
other factors described elsewhere in this document and from time to
time in documents that the Company files with the Securities and
Exchange Commission.
More information about potential risks and uncertainties that could
affect the Company’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 the Company’s
Quarterly Report on Form 10-Q for the fiscal quarter ended September 30,
2016 and other periodic reports the Company has filed and may file with
the Securities and Exchange Commission 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 the Company 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.
Comparisons of results for current and any prior periods are not
intended to express any future trends or indications of future
performance unless expressed as such, and should only be viewed as
historical data.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161121005505/en/
Source: Coty Inc.
Coty:
Investor Relations
Kevin Monaco, +1 212 389 6815
or
Media
Jennifer
Friedman, +1 212 389 7175