Coty Inc has revealed it made a binding offer yesterday to buy Chanel's cosmetics brand, with Chanel agreeing to enter into exclusive negotiations.
With plans for global expansion this year, Bourjois could help boost Coty in markets including Western Europe, the Middle East and Asia. Bourjois products are sold through approximately 23,000 points of sale in more than 50 countries around the world.
The deal would see Chanel receive 15 million shares of Coty - valued at around $US239.1 million based on the company's closing price on Monday.
"We are looking forward to having the Bourjois brand as part of our portfolio of leading beauty products, as well as welcoming Chanel as a Coty shareholder,” says Coty Inc chairman and interim CEO Bart Becht.
Bourjois’ brands are highly complementary to Coty’s existing colour cosmetics portfolio. Additionally, the company’s strong heritage, quality image and leadership positions in a number of Western European countries - where Coty is seeking to bolster its presence - provide a great opportunity for Coty to further strengthen its leadership position in the large and growing colour cosmetics category.”
Chanel representative Michael Rena adds, We are excited about the potential opportunities that joining with Coty could present for Bourjois. Coty and Bourjois share a passion for colour cosmetics, and together they would have strong potential to further advance their leadership in this attractive global category. We intend to examine the offer in more detail and enter into constructive talks with Coty.”
