Top Companies Report

9. Coty

July 11, 2011

New York, NY

212.479.4300

Website: www.coty.com

Sales: $3.8 billion


Sales:

$3.8 billion (estimated) for the year ended June 30, 2010.


Key Personnel:

Bernd Beetz, chief executive officer; Peter Harf, chairman; Sergio Pedreiro, chief financial officer; Michele Scannavini, president, Coty Prestige; Renato Semerari, president, Coty Beauty; Darryl McCall, executive VP-global operations; Géraud-Marie Lacassagne, senior VP-human resources; Jules Kaufman, senior VP, general counsel, secretary of the board.


Major Products:

Fragrances and beauty products sold in two divisions. Coty Prestige—Balenciaga, Bottega Veneta, Calvin Klein, Cerruti, Chloé, Chopard, Davidoff, Jennifer Lopez, Jil Sander, Joop!, Karl Lagerfeld, Kenneth Cole, L.A.M.B. fragrance by Gwen Stefani, La Voce by Reneée Fleming, Lancaster, Marc Jacobs, Nikos, Philosophy, Sarah Jessica Parker, Vera Wang, Vivienne Westwood and Wolfgang Joop; Coty Beauty—Adidas, Astor, Baby Phat, Beyoncé Knowles, Celine Dion, Chupa Chups, David and Victoria Beckham, Esprit, Exclamation, Faith Hill, Guess?, Halle Berry, Jovan, Kate Moss, Kylie Minogue, La Cross, Lady Gaga, Manhattan, Manhattan Clearface, Miss Sporty, Nautica, N.Y.C. New York Color, Nicole by OPI, OPI, Pierre Cardin, Playboy, Rimmel, Sally Hansen, Stetson, Tim McGraw, TJoy and Tonino Lamborghini.


New Products:

Reveal by Halle Berry. Acquisitions—OPI, TJoy and Dr. Scheller Cosmetics.


Comments:

Fueled by the public’s fascination with all things celebrity, privately-held Coty continues to post double-digit sales gains year after year.


“Look around. Celebrities are becoming more and more important in cinema, in art, in fashion,” Coty CEO Bernd Beetz told Reuters. “It’s in the DNA of society.”


While stars such as Jennifer Lopez, Gwen Stefani and Lady Gaga may be consumers’ DNA, acquisitions can be the growth hormone that companies, and their backers, crave.


Late last year, Coty made several key acquisitions including OPI, a prestige nail care company; Philosophy, a premier skin care and cosmetics company; TJoy, a leading Chinese skin care company; and Dr. Scheller Cosmetics AG, manufacturer of some of Germany’s most popular makeup and skin care brands. Those moves grabbed the attention of industry outsiders and in January 2011, Berkshire Partners LLC, the Boston-based private equity firm, and Rhône, a private equity firm with offices in New York and London, made minority equity investments in Coty. Terms of the transactions were not disclosed.


“Coty is an established leader in the global fragrance, beauty and skin care industry, with an impressive collection and diversity of consumer brands,” said M. Steven Langman, managing director, Rhône. “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.”


According to Beetz, the move puts Coty in a good position for more acquisitions.


“This mutually beneficial agreement allows Coty to continue its accelerated growth path organically and externally around the globe,” said Beetz. “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.”


With fiscal 2011 ending last month, Coty’s sales were expected to easily top $4 billion on the strength of its recent acquisitions and its growing portfolio of fragrance brands.

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