The JAB Holdings boss has invested the sizeable amount with his own money in the cosmetics maker, in a show of commitment to the company
Coty’s Executive Chairman Peter Harf has shown his commitment to the cosmetics owner by increasing his personal stake in the business.
The JAB Holdings boss, who served as Coty’s Chief Executive from 1993 to 2001, has bought a ‘sizeable’ bloc of convertible shares, equating to US$150m.
Harf has bought the shares from private equity firm KKR in a push to support the cosmetics maker.
“I put my money where my mouth is,” said the German businessman in a statement to Cosmetics Business.
“I believe in Coty and I believe in Sue, and I am investing my own money into this company.”
As of February, Harf owned 12.3 million shares in the CoverGirl owner, a stake that would be worth $59m, according to Bloomberg.
Coty added: “We are fortunate to have such supportive and committed long-term shareholders and look forward to our continued growth across all core regions, categories and price positions.”
Coty has suffered a turbulent few years with static sales and hurdles implemented by the Covid-19 pandemic.
This has forced the group to sell-off a selection of its holdings, including its Professional and Retail Hair business, which is set to complete at the end of the month.
However, Harf’s investment follows Coty’s surprise profit turnover for Q1, said to have been aided by heavy investment in its digital platforms implemented by the group’s CEO, former L’Oréal executive and Orveda founder, Sue Y Nabi.
“After several months in the CEO role, I am as convinced as ever that we’ve put in place the right foundations to unleash Coty’s huge potential,” she said earlier this month.
“Coty is now ready to grow in all core regions, categories and price positions across the market.”