France: Coty offers to buy Chanel’s Bourjois cosmetics brand
Coty has announced that it has made an offer to buy the French cosmetic brand Bourjois in order to expand its presence in Western Europe. It would acquire the brand from cosmetics giant Chanel which would then become a significant shareholder of Coty through the receipt of 15 million Class A Coty shares, the company said.
Bourjois’ portfolio of colour cosmetic products are sold through approximately 23,000 points of sale in more than 50 countries around the world, enjoying leading positions in markets such as Western Europe, the Middle East and Asia, Coty said in a statement.
Michael Rena, Chanel’s representative, said: “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”.
Meanwhile Bart Becht, Chairman and Interim CEO of Coty Inc., commented: "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. 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 colour cosmetics category”.
The proposal is subject to customary closing conditions, including regulatory clearances.