Coty Inc. and Chanel announced that Coty has submitted a binding offer to acquire the Bourjois cosmetics brand from Chanel for 15 million Class A Coty shares. Chanel has agreed to enter into exclusive negotiations.
Bourjois’ portfolio of color cosmetic products are sold through approximately 23,000 points of sale in more than 50 countries around the world, and, according to the company, enjoys a leading position in the color cosmetics segment in Western Europe, the Middle East and Asia. Bourjois was founded in 1863 by French actor Joseph-Albert Ponsin, who developed a line of color cosmetics for his fellow actors.
"We are looking forward to having the Bourjois brand as part of our portfolio of leading beauty products, as well as welcoming Chanel as a Coty shareholder,” said Bart Becht, chairman and interim CEO of Coty Inc. “Bourjois’ brands are highly complementary to Coty’s existing color cosmetics portfolio. Additionally, the company’s strong heritage, quality image and leadership positions in a number of Western European countries, where Coty is seeking to bolster its presence, provide a great opportunity for Coty to further strengthen its leadership position in the large and growing color cosmetics category.”
“We are excited about the potential opportunities that joining with Coty could present for Bourjois,” said Michael Rena, Chanel's Representative. “Coty and Bourjois share a passion for color cosmetics, and together they would have strong potential to further advance their leadership in this attractive global category. We intend to examine the offer in more detail and enter constructive talks with Coty.”
The proposal is subject to customary closing conditions, including regulatory clearances. The relevant employee representative bodies will be consulted prior to entering into a definitive agreement.