Burberry looks to Coty to bolster beauty business
British fashion house Burberry is looking to pick up its beauty business by partnering with international beauty giant Coty. The partnership will be aimed at building a cosmetics business within Burberry’s own brand by licensing the rights out to Coty for $130 million. This transaction will pass over long-term rights globally to Coty, and involve an additional $40 million in relation to “the transferring of assets”. This sum is roughly equal to Burberry’s total beauty business revenue from last year, and the brand is hoping that Coty will have the wherewithal to grow the business.
Burberry’s share price has risen by 19% so far this year
SOURCE: Yahoo Finance
Coty’s CEO Camillo Pane said: “We are pleased to complete this transaction and move forward with our strategic partnership. 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.”
Burberry has recently committed to serious investment in its beauty business, boosting sales of its My Burberry and Mr. Burberry fragrances. The company came under new management this year, and CEO Marco Gobbetti is looking to make his mark and reinvigorate the brand. In a statement on the partnership, he said:
“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.”
Dominion holds Burberry in its Global Trends Luxury Fund.
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