Coty Inc. has agreed to acquire the fragrance business of Unilever NV for $800 million.
The deal brings to Coty such brands as Calvin Klein, Cerruti, Vera Wang, Chloe and Lagerfield that are marketed by Unilever Cosmetics International.
“Today’s acquisition represents an important further step in the transformation of Coty that began in 2001,” said CEO Bernd Beetz. “Over the last several years, Coty’s success with fashion, celebrity and lifestyle fragrances has enabled us to grow when most of our industry has been flat or shrinking. We are now entering a new phase in which we will greatly expand our presence in the market for prestige and ultra-prestige brands on a global basis.
As part of the deal, Coty gets a manufacturing and distribution center in Mt. Olive, NJ, and a distribution center in Lille, France.
The Unilever brands will become part of the Lancaster Group Worldwide, the prestige division of Coty. Coty said the deal is part of the group’s strategy to increase U.S. sales and expand its presence in Europe and gain a stronger foothold in Asia.
The transaction is expected to be completed in the coming months.
Coty, which had $2 billion in sales last year, also sells mass (division) fragrances such as adidas and masstige (division) brands such as Celine Dion.
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