Coty to buy philosophy skin care brand

By Katie Bird

- Last updated on GMT

Related tags: Skin care, Skin, Carlyle group, Coty

Coty plans to buy skin care company philosophy as it attempts to grow its presence in the skin care market.

Following regulatory approval, the New York-headquartered fragrance and cosmetics company will integrate philosophy into its prestige division which currently includes brands such as Calvin Klein and Balenciaga.

“philosophy is one of the beauty industry’s most prestigious brands and a fantastic addition to the Coty family,”​ said Coty CEO Bernd Beetz.

The skin care company, which was owned by asset manager The Carlyle Group, is predicted to achieve sales of more than $200m in 2010, and Coty has said it is convinced of its growth potential.

"philosophy​ is the fastest growing skincare brand in the US, it is sizeable ($200M) and highly profitable. Not only do we see this success as sustainable but we believe there are still huge opportunities for growth in the US and internationally,"​ a spokesperson for Coty told USA.

Expansion in skin care sector

For Coty, the acquisition is a way to enlarge its footprint in the skin care sector.

"The acquisition of philosophy​, Inc. further strengthens and extends Coty Prestige’s current skin care portfolio, which includes leading skin care brand Lancaster. philosophy​ is a company with a complementary product portfolio, a respected brand within the market and a similar approach to growth," ​the spokesperson said.

At present, the company’s largest sector is fragrances, which in 2009 accounted for 59 per cent of total sales. In the same year, sales from the skin, sun and personal care division made up 19 percent.

The remaining 22 percent of sales in 2009 were accounted for by the color cosmetics division, which has seen significant expansion in recent months with a number of new deals.

Earlier this month, the company announced it would acquire Germany-headquartered Dr Scheller cosmetics (DSC), adding the color cosmetics brand Manhatten to its portfolio.

According to the company, with the addition of Manhattan brand Coty will become the second largest player in the German color market.

The Dr Scheller acquisition, followed the announcement that the company has acquired the license for Calvin Klein Color Cosmetics. The brand was already present in the company’s portfolio as Coty has been responsible for its fragrance products since acquiring them from Unilever in 2005.

At the time of the acquisition, Beetz claimed the introduction would further strengthen both Coty’s and Calvin Klein’s ‘dynamic’ position within the beauty arena.

Related topics: Business & Financial

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