Burberry announces official start of beauty partnership with Coty
Burberry today announces the beginning of its strategic partnership with Coty to accelerate the growth and development of the Burberry Beauty business.
The partnership will build on the past four years of successful elevation and repositioning of Burberry Beauty. During this time, Burberry launched award-winning luxury fragrances such as My Burberry and Mr Burberry, redeveloped and relaunched make-up, and boosted sales of new fragrances in key markets.
Leveraging the strengths of each partner, Burberry will continue to lead on creative elements of the business while benefitting from Coty’s deep beauty industry expertise and first-class global distribution. The partnership will provide an accretive impact to Burberry’s earnings from FY 2019 through a combination of upfront payments and ongoing royalties.
Marco Gobbetti, Chief Executive Officer, Burberry, commented: “Following months of hard work to ensure a smooth transition, we are pleased that this strategic partnership, which brings together tremendous beauty experience and expertise, has begun. Burberry is incredibly proud of what has been achieved in the last four years and we look forward, with the support of Coty, to further building on these foundations.”
Camillo Pane, Chief Executive Officer, Coty, said: “We are pleased to complete this transaction and move forward with our strategic partnership, combining Burberry’s British heritage of innovation, craftsmanship and design with Coty’s expertise and leadership in luxury beauty products. Coty’s world-class ability in developing and bringing to market beauty brands will help drive a new phase of development and growth for Burberry Beauty.”
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- Burberry confirms it will receive cash payments of £130m on 2 October for the long-term exclusive global licence and related transfer of the Beauty business, and now expects around £40m for assets transferring (which is subject to inventory adjustments) totalling c.£170m
- Burberry will also receive ongoing royalty payments
- Burberry currently expects c.£30m of one-off cash costs associated with this agreement
- In FY 2016/17 wholesale Beauty revenue was £171m
- All of the above is based on currently available information
- Established in 1856, Burberry is a global luxury brand with a distinctive British heritage, built around its core iconic outerwear
- Burberry is headquartered in London. It is listed on the London Stock Exchange (BRBY.L) and is a constituent of the FTSE 100 index
- Visit www.burberryplc.com for further information
About Coty Inc.
Coty is one of the world’s largest beauty companies with approximately $9 billion in pro forma revenue, with a purpose to celebrate and liberate the diversity of consumers’ beauty. Its strong entrepreneurial heritage has created an iconic portfolio of leading beauty brands. Coty is the global leader in fragrance, a strong number two in professional salon hair color & styling, and number three in color cosmetics. Coty operates three divisions - Consumer Beauty, which is focused on mass color cosmetics, mass retail hair coloring and styling products, body care and mass fragrances with brands such as COVERGIRL, Max Factor and Rimmel; Luxury, which is focused on prestige fragrances and skincare with brands such as Calvin Klein, Marc Jacobs, Hugo Boss, Gucci and philosophy; and Professional Beauty, which is focused on servicing salon owners and professionals in both hair and nail, with brands such as Wella Professionals, Sebastian Professional, OPI and ghd. Coty has over 20,000 colleagues globally and its products are sold in over 150 countries. Coty and its brands are committed to a range of social causes as well as seeking to minimize its impact on the environment.
For additional information about Coty Inc., please visit www.coty.com.