Coty announces strategic partnership with Burberry Beauty
A post shared by Burberry (@burberry) on Mar 28, 2017 at 9:42am PDT
NEW YORK — Coty on Monday announced a new strategic partnership with Burberry Beauty to acquire the long-term global license rights for Burberry Beauty’s luxury fragrances, cosmetics and skin care.
Under the agreement, Coty will develop, manufacture and distribute Burberry Beauty products around the world. Coty will pay a consideration of £130 million ($162.1 million) for the long-term exclusive global license.
“We are proud to welcome Burberry as a strategic partner of Coty. We look forward to growing further Burberry’s luxury beauty products using Coty’s world-class expertise in developing and bringing to market beauty brands,” Coty CEO Camillo Pane said.
Coty’s luxury division will manage the Burberry Beauty business. The Paris-based division develops, produces and markets fragrances for such fashion houses as Gucci, Marc Jacobs, Hugo Boss, Calvin Klein, Alexander McQueen, Bottega Veneta and Balenciaga. It also works on premium cosmetics and skin care unfer such brands as philosophy, Lancaster and Gucci.
“Burberry is an iconic luxury brand. It fits perfectly with Coty Luxury’s portfolio, which includes contemporary and globally relevant prestige beauty brands,” Coty luxury president Edgar Huber said. “We are uniquely positioned to develop Burberry Beauty to the next level. This is another significant step in building Coty’s Luxury division.”
The deal is expected to close in Q4 2017, at which point coty will purchase roughly £50 million ($62.4 million) worth of inventory from Burberry.
“We are delighted to partner with Coty, a world leader in luxury fragrance and makeup,“ Burberry chief creative officer and CEO Christopher Bailey said. Working with a global partner of Coty’s scale and expertise will help drive the next phase of Burberry Beauty’s development and position this business for growth.”