08.28.19
Coty and Younique today announced a mutual decision to terminate their partnership.
Coty Inc. acquired 60% of the fast-growing beauty brand in 2017 for approximately $600 million in cash.
According to a statement released from Coty, given the different nature of the companies’ business models and the need for a strong and specific focus to successfully improve fundamentals, Coty and Younique have agreed to part and focus on their respective strengths.
Coty will sell its controlling stake to Younique’s original founders upon regulatory clearance, as soon as practicable, it said. The conditions of the exit will not be made public, however no further adjustment to Coty intangible asset base is expected as a result of this transaction.
Younique was founded in 2012 in the US by siblings Derek Maxfield and Melanie Huscroft. Its makeup and skin care products were sold through its then-disruptive peer-to-peer e-commerce platform. At the time, Younique generated net revenyes sales of around $400 million.
“I am grateful for the collaboration and knowledge we have gained from our partnership with Coty,” said Derek Maxfield, CEO, Younique. “Younique is excited to return to our entrepreneurial roots armed with the knowledge and insights gained from the partnership experience. We remain focused on serving our Presenters with innovative products and leading-edge digital selling tools that make Younique the easiest way to start and run a direct sales business.”
“We wish Derek and the teams all the best for Younique’s next chapter,” said Pierre Laubies, CEOvof Coty. “Our presence in Younique for the past few years has been an accelerator of our digital strategy, which has today become one of Coty’s strengths. We now need to focus on our turnaround plan and the significant opportunities which lie in our Luxury, Consumer and Professional businesses.”
Coty Inc. acquired 60% of the fast-growing beauty brand in 2017 for approximately $600 million in cash.
According to a statement released from Coty, given the different nature of the companies’ business models and the need for a strong and specific focus to successfully improve fundamentals, Coty and Younique have agreed to part and focus on their respective strengths.
Coty will sell its controlling stake to Younique’s original founders upon regulatory clearance, as soon as practicable, it said. The conditions of the exit will not be made public, however no further adjustment to Coty intangible asset base is expected as a result of this transaction.
Younique was founded in 2012 in the US by siblings Derek Maxfield and Melanie Huscroft. Its makeup and skin care products were sold through its then-disruptive peer-to-peer e-commerce platform. At the time, Younique generated net revenyes sales of around $400 million.
“I am grateful for the collaboration and knowledge we have gained from our partnership with Coty,” said Derek Maxfield, CEO, Younique. “Younique is excited to return to our entrepreneurial roots armed with the knowledge and insights gained from the partnership experience. We remain focused on serving our Presenters with innovative products and leading-edge digital selling tools that make Younique the easiest way to start and run a direct sales business.”
“We wish Derek and the teams all the best for Younique’s next chapter,” said Pierre Laubies, CEOvof Coty. “Our presence in Younique for the past few years has been an accelerator of our digital strategy, which has today become one of Coty’s strengths. We now need to focus on our turnaround plan and the significant opportunities which lie in our Luxury, Consumer and Professional businesses.”
