×
35 380
Fashion Jobs
TJX CORPORATE
IT Security Analyst Iii
Permanent · Marlborough
MACY'S
Beauty Account Coordinator - Trend: Herald Square/Nyc Division
Permanent · New York
DESIGNER BRANDS
Sales Supervisor Part-Time
Permanent · Maplewood
DESIGNER BRANDS
Sales Supervisor Part-Time
Permanent · Newport News
DESIGNER BRANDS
Inventory Control Clerk
Permanent · Westampton
RALPH LAUREN
Polo Factory Store - Store Selling Manager
Permanent · Las Vegas
KOHLS
Full-Time Sales Supervisor - Softlines
Permanent · Mobile
JCREW
Associate Manager, j.Crew Factory, Bergen Town Center Womens
Permanent · Paramus
VICTORIA'S SECRET
Brand Operational Manager
Permanent · Queensbury
NORDSTROM INC
Corporate Strategy Manager
Permanent · Seattle
NORDSTROM INC
General Manager 3, San Bernardino Fulfillment Center – San Bernardino, ca
Permanent · San Bernardino
NORDSTROM INC
Loss Prevention Security Ambassador Fulton Street Rack
Permanent · New York
NORDSTROM
Loss Prevention Security Ambassador Southcenter
Permanent · Tukwila
NORDSTROM INC
sr Human Resources Director - Merchandising
Permanent · Seattle
NORDSTROM INC
Security Ambassador 1
Permanent · San Jose
JCPENNEY
Visual Display Art Director
Permanent · Plano
JCPENNEY
Senior Copywriter / Copy Manager - Marketing Creative
Permanent · Plano
NEIMAN MARCUS
Product Manager- Mobile
Permanent · Irving
MAC
Executive Director, Ecommerce – Mac North America
Permanent · New York
ESTÉE LAUDER COMPANIES
Keyholder - Cosmetic Company Store - 20Hrs - Tanger Outlet Center - Washington,PA
Permanent · Washington
SALLY BEAUTY CORPORATE
District Manager
Permanent · Atlanta
TJX CORPORATE
Loss Prevention Investigator
Permanent · Houston
By
Reuters API
Published
Nov 22, 2019
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Unilever, Henkel and buyout funds eye bids for Coty's $7 billion beauty brands

By
Reuters API
Published
Nov 22, 2019

Consumer goods giants Unilever and Henkel and a series of buyout funds including Advent and Cinven are talking to U.S. cosmetics maker Coty to submit bids for some of its most popular beauty brands, three sources told Reuters.

- Coty


Coty, which has a market value of $9 billion and is majority owned by German conglomerate JAB Holdings, is expected to kick off an auction process in December to find a new owner for a portfolio of professional hair and nail care brands, the sources said, speaking on condition of anonymity.

The portfolio, which includes Wella, Clairol, GHD and OPI among others, is worth up to $7 billion and has drawn interest from both industry players and financial investors, they said.

Colgate-Palmolive Co is among a number of consumer companies looking at add-on deals to grow their skin care units, the sources said.

New York-based Colgate Palmolive, which recently bought the skin care unit of France's Laboratoires Filorga Cosmétiques for 1.5 billion euros ($1.66 billion), is expected to enter the race for Coty's brands, facing competition from rivals Unilever and Henkel as well as heavyweight investment funds, the sources said.

The list of financial sponsors includes Advent, Blackstone, KKR, CVC Capital Partners and BC Partners, they said.

One of the sources said Cinven was examining a possible joint bid for the brands.
Coty, Henkel, Colgate-Palmolive, Cinven, Advent, CVC and BC Partners declined to comment, while Unilever, Blackstone and KKR were not immediately available for comment.

Coty aims to complete the sale, which was announced last month, by the middle of 2020 and has hired Credit Suisse to handle discussions with prospective bidders.
Confidential information packages are expected to be dispatched in December with a view to receiving non-binding offers early next year, the sources said.

Bankers advising the prospective bidders estimate the portfolio could fetch 10 to 12 times its core earnings of roughly $600 million, giving it a valuation of $6 to $7 billion, the sources said.

Coty's professional beauty unit, which primarily sells hair and nail care products to salons, accounts for about 21% of its total revenue, with annual sales of about $1.81 billion.

The unit, however, has seen falling sales in the last four quarters, prompting Coty's decision to reduce its exposure to the professional segment.

Coty also owns other cosmetic brands such as Rimmel and Max Factor as well as skin care firms Lancaster and Philosophy but has struggled for years to integrate such a wide range of products.

Its 2016 purchase of a slice of Procter & Gamble's beauty business, which included Covergirl and Max Factor, forced it to take billions of dollars in write-downs and outline a four-year restructuring plan.

Its debt load stood at $7.7 billion at the end of June.

Coty's boss Pierre Laubies said in October the sale would improve the company's ability to invest in areas with significant growth potential, but added that proceeds from any deal would be used to pay down debt and return excess cash to shareholders.

© Thomson Reuters 2020 All rights reserved.