In FY 2015/16 Burberry Beauty revenue was £203M (approximately $254 million). Coty will pay a cash consideration of £130M (approximately $163 million) for the long-term exclusive global license.
“We are proud to welcome Burberry as a strategic partner of Coty,”said Coty CEO Camillo Pane.“We look forward to growing further Burberry’s luxury beauty products using Coty’s world-class expertise in developing and bringing to market beauty brands.”
The Burberry Beauty business will be managed within Coty’s Luxury division. Headquartered in Paris, Coty Luxury develops, produces, markets and distributes globally a range of fashion house fragrances including Gucci, Marc Jacobs, Hugo Boss, Calvin Klein, Alexander McQueen, Bottega Veneta and Balenciaga,as well as premium cosmetics and skin care under the philosophy, Lancaster and Gucci brands.
Edgar Huber, president Coty Luxury, said that Coty is “uniquely positioned to develop Burberry Beauty to the next level. This is another significant step in building Coty’s Luxury division.”
“We are delighted to partner with Coty, a world leader in luxury fragrance and make-up. Working with a global partner of Coty’s scale and expertise will help drive the next phase of Burberry Beauty’s development and position this business for growth,”said Christopher Bailey, chief creative and CEO, Burberry.
Burberry beauty products will be sold in leading luxury beauty retailers globally as well as in Burberry stores and digital channels.
The deal is expected to close in calendar Q4 2017, at which point Coty will buy from Burberry approximately £50M of inventory. The deal is subject to customary regulatory approvals.