In an effort to enhance its global position in luxury fragrance and presence in luxury cosmetics, Coty has announced its partnership with Burberry Beauty. The deal, which is anticipated to close in Q4 2017, will grant Coty the power to develop, manufacture and distribute the full range of Burberry Beauty products around the world.
In fiscal years 2015/16, Burberry Beauty saw a revenue of £230 million. Coty plans on paying a cash consideration of £130 million for the long-term exclusive global license of the brand’s luxury fragrances and cosmetics. Once the deal is closed, Coty will buy roughly £50 million of inventory from Burberry.
Christopher Bailey, CEO and chief creative of Burberry, stated, “We are delighted to partner with Coty, a world leader in luxury fragrance and makeup. 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.”
Camillo Pane, CEO of Coty, added, “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.”