Completion of Acquisition of the Exclusive Long-Term License Rights
for Burberry Beauty Luxury Fragrances and Cosmetics
NEW YORK--(BUSINESS WIRE)--Oct. 2, 2017--
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.
About Burberry
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.
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
(“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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171002005755/en/
Source: Coty Inc.
Coty:
Investor Relations:
Kevin Monaco, +1 212
389 6815
Kevin_Monaco@cotyinc.com
or
Media:
Jennifer
Friedman, +1 917 754 8399
Jennifer_Friedman@cotyinc.com
or
Arnaud
Leblin, + 33 6 80 25 06 60
Arnaud_Leblin@cotyinc.com
or
Julien
Wintenberger, + 33 6 15 68 39 60
Julien_Wintenberger@coty.com