Beauty Company Acquires Leading Cosmetic Producer in Germany Furthering its Expansion in Color Cosmetics
NEW YORK, Nov. 12, 2010 /PRNewswire-Asia/ -- Coty Inc., one of the world's largest fragrance and leading global beauty companies, and Kalina Group, a leading Russian cosmetic company, today announced that Coty has entered into an agreement with Kalina to acquire 100% of the shares of Dr. Scheller Cosmetics AG and its subsidiaries (DSC), which are currently detained by Kalina.
The acquisition further enhances Coty Beauty's flourishing color portfolio through the addition of DSC's leading German makeup brand, Manhattan and its anti-acne cosmetic brand, Manhattan Clearface. With the addition of DSC's Manhattan products, Coty becomes the second largest player in the German color market.
Coty will leverage DSC's current distribution channels for its existing products including Astor, Rimmel and Esprit Cosmetics. With this acquisition, Coty's market share in the color cosmetics category in Germany will increase from 7 percent to 17 percent. Globally, the color cosmetics pillar will represent 25 percent of Coty's total portfolio. It also paves the way for Coty to achieve its goal of becoming a $7 billion beauty company by 2015.
"The acquisition of Dr. Scheller Cosmetics is a natural extension of our strategy to offer a well balanced portfolio of brands, representing some of the leading consumer products in Germany," said Bernd Beetz, CEO, Coty Inc. "Their well established brand, high-quality products, market presence and loyal consumers will complement and add value to Coty's existing offerings."
"We are proud of what we've been able to accomplish since acquiring Dr. Scheller Cosmetics AG, restructuring the company and bringing it to profitability," said Alexander Petrov, CEO of OJSC Concern "KALINA". "We are confident that the company will continue to grow under Coty's leadership. However, we will continue to maintain ownership of Dr. Scheller Das Naturkonzept product line, which we intend to grow as an international brand."
Financial terms of the transaction were not disclosed. The transaction is also subject to certain merger control approvals.
About Coty Inc.
Coty was created in Paris in 1904 by Francois Coty who is credited with founding the modern fragrance industry.
Today, Coty Inc. is a recognized leader in global beauty with annual net sales of nearly $4 billion. Driven by an entrepreneurial spirit, passion, innovation and creativity, Coty Inc. has developed an unrivaled portfolio of notable brands and delivers its innovative products to consumers in 90 markets worldwide.
The Coty Prestige brand portfolio is distributed in prestige and ultra-prestige stores and includes Balenciaga, Bottega Veneta, Calvin Klein, Cerruti, Chloe, Chopard, Davidoff, Jennifer Lopez, Jil Sander, JOOP!, Karl Lagerfeld, Kenneth Cole, L.A.M.B. fragrance by Gwen Stefani, La Voce by Renee Fleming, Lancaster, Marc Jacobs, Nikos, Sarah Jessica Parker, Vera Wang, Vivienne Westwood and Wolfgang Joop.
The Coty Beauty brand portfolio is more widely distributed and includes adidas, Astor, Baby Phat, Beyonce Knowles, Celine Dion, Chupa Chups, David and Victoria Beckham, Esprit, Exclamation, Faith Hill, GUESS?, Halle Berry, Jovan, Kate Moss, Kylie Minogue, La Cross, Miss Sixty, Miss Sporty, Nautica, N.Y.C. New York Color, Pierre Cardin(1), Playboy, Rimmel, Sally Hansen, Shania Twain, Stetson, Tim McGraw, and Tonino Lamborghini.
Coty and Puig Fashion and Beauty S.A. have a strategic partnership for the distribution of the perfume lines of Nina Ricci, Carolina Herrera, Prada, Paco Rabanne, and Antonio Banderas in the United States and Canada.
For additional information about Coty Inc., please visit http://www.coty.com.
(1) Not available in North America
About Kalina Group
JSC Concern "Kalina" is one of the leading Russian perfumery and cosmetics producers. The leading brands of the company are "Black Pearl", "Clean Line", and "Dr. Scheller" - among skin-care products; "32" and "Forest Balsam"- among oral care products.
Concern "Kalina" consists of its parent enterprise in Ekaterinburg and several subsidiaries, including "Pallada Ukraine" (Ukraine), "Glavskazka International" (Russia), "Dr. Scheller Beauty Center" (Russia), Kalina Overseas Holding B. V. (Netherlands) and Kalina International SA (Switzerland).
