Top Companies Report

8. Coty

June 28, 2012

8. Coty

New York, NY
212.479.4300
www.coty.com
Sales: $4.1 billion.

Key Personnel: Bart Becht, chairman; Bernd Beetz, chief executive officer; Jules Kaufmann, senior vice president, general counsel; Geraud-Marie Lacassagne, senior vice president, human resources; Ralph Macchio, chief scientific officer, senior vice president, global research and development; Darryl McCall, executive vice president, operations; Sergio Pedreiro, chief financial officer; Michele Scannavini, president, Coty Prestige; Renato Semerari, president, Coty Beauty; Peter Shaefer, senior vice president, business development.

Major Products: Fragrances, skin care, color cosmetics marketed under such names as Adidas, Astor, Balenciaga, Beyoncé, Bottega Veneta, Calvin Klein, Celine Dion, Cerruti, Chloé, Chopard, CK One Color, David Beckham, Davidoff, Elite Models, Esprit, Faith Hill, Guess, Halle Berry, Heidi Klum, Jennifer Lopez, Jil Sander, Joop!, Jovan, Karl Lagerfeld, Kate Moss, Kylie Minogue, Lancaster, Madonna, Manhattan, Marc Jacobs, Miss Sporty, Nautica, Nikos, NYC New York Color, Nicole by OPI, OPI, Philosophy, Pierre Cardin, Playboy, Rimmel, Roberto Cavalli, Sally Hansen, Sarah Jessica Parker, Stetson, Tim McGraw, Tjoy, Tonino Lamborghini, Vera Wang, Vivienne Westwood.

New Products: Truth or Dare fragrance, OPI Holland nail enamel, Rimmel Scandaleyes mascara, Calvin Klein Color Cosmetics. To be launched: Monster, Lady Gaga’s new fragrance (Fall 2012).

Comments: Coty came calling, but the Avon Lady refused to come to the door. After Avon’s board outright rejecting an unsolicited $10 billion bid in April, Coty execs upped the ante to $10.7 billion. Less than a month later, Coty withdrew its second bid. In a letter to the Avon board, Coty said it was moving on to pursue other opportunities. If Avon had given a credible reason of why it needed more time, Coty would have considered agreeing to it, people familiar with the matter said. But after reaching out to various parties on the Avon side and receiving no reply, Coty decided to stick to its original deadline.

“(Avon’s) lack of engagement with us leads us to believe that you remain reluctant to explore a friendly, negotiated combination on a reasonable timetable,” Coty chairman Bart Becht wrote in the letter to Avon. “Two months is enough....it is time for Coty Inc. to move on.”

For its part, Avon issued the following statement:

“Avon Products responded promptly to Coty’s May 9th letter by disclosing it on May 10th and indicating that its Board would consider the contents of the letter. Subsequently on May 13th, Avon’s Board said it would respond to Coty’s letter within one week after considering it in conjunction with management and financial and legal advisors. On May 14th, five days after sending its letter, Coty withdrew its proposal.”

With that, Becht returned to the drawing board to mull his next move, which could include bringing Coty public. Coty Inc. has tapped Bank of America Merrill Lynch and J.P. Morgan Chase as lead underwriters for an initial public offering, which is expected to be priced this summer or early fall, people familiar with the matter said.

Nearly everyone agrees that Coty will continue to look for acquisitions. But few of the names that have emerged, including Perricone MD and Urban Decay, have a presence in emerging markets—something that made Avon very attractive to Coty in the first place.

Becht became Coty’s chairman in November, after a lengthy and successful career at Reckitt Benckiser. Coty is majority owned by Joh. A. Benckiser, which is also the largest shareholder of Reckitt Benckiser Group PLC.


 

Related End-User Markets:

blog comments powered by Disqus
  • Back to School

    Back to School

    Tom Branna, Editorial Director||September 1, 2016
    It may be September, but class was in session this summer during the Private Label Manufacturers Association’s Executive Educ

  • Special Effects

    Special Effects

    Melissa Meisel, Associate Editor||August 1, 2016
    Fall 2016 color cosmetics reflect light and offer a focus on elements like pigment, slip and wear.

  • Works of Art

    Works of Art

    Tom Branna, Editorial Director||August 1, 2016
    These suppliers know that the container can be just as important as the juice to entice luxury shoppers.

  • Sustainability is Omnipresent

    Sustainability is Omnipresent

    Christine Esposito , Associate Editor||July 1, 2016
    Industry stakeholders convene in New York City for Organic Monitor’s annual event

  • Perceived Perfection

    Perceived Perfection

    Christine Esposito, Associate Editor||July 1, 2016
    From primers to pressed powders, facial cosmetics help create the illusion of a flawless complexion.

  • Preserve & Serve

    Preserve & Serve

    Melissa Meisel , Associate Editor||July 1, 2016
    Suppliers with innovative preservatives provide staying power for formulations.

  • Take Notice

    Take Notice

    Melissa Meisel , Associate Editor||June 1, 2016
    Packaging trends revolve around trendy artwork, eco-conscious materials—and portability is a plus too!

  • Shiseido Advances in the US

    Shiseido Advances in the US

    Tom Branna, Editorial Director||June 1, 2016
    New facility in Windsor, NJ demonstrates its dedication to the US and other markets outside Japan.

  • Get Smart About Your Big Data

    Get Smart About Your Big Data

    Christine Esposito, Associate Editor||June 1, 2016
    Experts at the IRI Growth Summit explain how to make personal connections with customers.

  • April in Paris

    April in Paris

    Tom Branna, Editorial Director||June 1, 2016
    In-Cosmetics sets attendance record in its return to the City of Light.

  • The Essence of Individuality

    The Essence of Individuality

    Melissa Meisel , Associate Editor||April 1, 2016
    Fragrance sales are fueled by unique facets.

  • Who Makes That?

    Who Makes That?

    Tom Branna, Editorial Director||April 1, 2016
    From concept and formulation to testing and filling, today’s contract manufacturers perform a range of services for marketers

  • Inspiring the Next Generation Of Personal Care Products

    Inspiring the Next Generation Of Personal Care Products

    March 1, 2016
    In-Cosmetics 2016 returns to Paris next month, April 12-14, 2016.

  • Makeup Magic

    Makeup Magic

    Melissa Meisel, Associate Editor||March 1, 2016
    Sales get a lift from novel ingredients and endorsements from the likes of Gwen Stefani.

  • Innovation On Display

    Melissa Meisel, Associate Editor||February 3, 2016
    P&G Beauty Digital Studio showcases new products for 2016

  • Testing for Sustainable Preservatives

    Adam P. Byrne, William Michael Hart-Cooper, Kaj Johnson, Larry H. Stanker, Dominic W. S. Wong, William J. Orts||January 4, 2016
    A rapid, inexpensive and qualitative protocol for determining microbial growth inhibition.

  • Burgeoning Beauty

    Burgeoning Beauty

    Melissa Meisel, Associate Editor||January 4, 2016
    A look at trailblazers for 2016 and beyond.

  • In-Cosmetics Paris Has Sights on US

    In-Cosmetics Paris Has Sights on US

    Imogen Matthews , In-Cosmetics||December 2, 2015
    Market focus is on the USA.

  • Just Wild About Harry’s Cosmeticology

    Just Wild About Harry’s Cosmeticology

    Tom Branna, Editorial Director||November 2, 2015
    The ninth edition, edited by Meyer Rosen, has been expanded and improved with an emphasis on the future of the industry.

  • Contract Manufacturing/Private Label Directory

    Contract Manufacturing/Private Label Directory

    October 1, 2015
    Our directory is your source to find a manufacturer to get your product to market.

  • Market Your Cosmetics In Europe with Safety

    Market Your Cosmetics In Europe with Safety

    Pascal Yvon, IDEA TESTS Group||October 1, 2015
    Compliance to European safety regulations for cosmetic products, final formulations and ingredients.

  • A Consumer Revolution

    A Consumer Revolution

    Melissa Meisel, Associate Editor||June 1, 2015
    IRI’s 2015 Summit celebrates the progression of information.

  • Yeah, But How Does It Make You Feel?

    Yeah, But How Does It Make You Feel?

    Imogen Matthews, In-Cosmetics||January 6, 2015
    An update on the growing importance of creating a sensory dimension in cosmetics and toiletries.

  • Think Differently

    Think Differently

    Tom Branna , Editorial Director||January 6, 2015
    The 2014 Annual Meeting of the Society of Cosmetic Chemists attracted the largest crowd in years.

  • Never Ending Journey

    Never Ending Journey

    Melissa Meisel and Christine Esposito , Associate Editors||November 3, 2014
    Sustainability is the present and future of household and personal care packaging.