Coty acquires license for Burberry Beauty for £130m

Burberry fragrances, cosmetics and skin care will join Coty’s Luxury division alongside Alexander McQueen, Hugo Boss and Gucci

This is another significant step in building Coty’s Luxury division

Coty is due to acquire the global license rights for Burberry Beauty’s fragrances, cosmetics and skin care for £130m.

The cash deal, due to close in Q4, means Coty will be responsible for the development, manufacture and distribution for the full range of Burberry Beauty products globally.

The deal is described as ‘long-term’ by Coty, although it did not disclose the exact length or agreed end-date.

Upon closure of the deal, Coty will buy roughly £50m of inventory from Burberry.

Describing Burberry as an “iconic luxury brand”, Edgar Huber, President of Coty Luxury, said: “We are uniquely positioned to develop Burberry Beauty to the next level.

“This is another significant step in building Coty’s Luxury division.”



Working with a global partner of Coty’s scale and expertise will help drive the next phase of Burberry Beauty’s development

Burberry’s fragrance and cosmetics arm has had a chequered licensing history.

In 2012, Burberry broke away from Inter Parfums, and decided to take its fragrance and beauty business back into its own hands, operating it as a fifth business division, Burberry Beauty.

However, it did go on to partner with Shiseido’s Beauté Prestige International, giving away certain distribution rights in France, Spain and the US, plus travel retail in Europe and select Asia Pacific markets.

Since then, Burberry has predominantly operated its Beauty business in-house, making the new Coty deal a strategic shift for the company.

Burberry CEO Christopher Bailey explained:“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.”

The Burberry Beauty license will be managed by Coty’s Luxury division, headquartered in Paris.

The division already includes high-end fragrance brands including: Gucci, Marc Jacobs, Hugo Boss, Calvin Klein, Alexander McQueen, Bottega Veneta and Balenciaga.

Cosmetics brands under the division include: Gucci, philosophy and Lancaster.

Burberry Beauty generated revenue of £203m in its full-year 2015/16 results.

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