BUSINESS OF FASHION: COTY EXPANDS ITS PORTFOLIO WITH CHANEL’S BOURJOIS BRAND
Mass-market cosmetics company Coty, Inc. has offered Chanel a 4.2 percent stake in its business, in exchange for purchase of Chanel’s Bourjois brand. The stock offering is worth approximately $239 million, according to WWD.
Owned by Germany’s billionaire Reimann family, Coty’s brand roster includes household names like Rimmel and OPI. Bourjois is the only non-luxury brand under Chanel, owned by the Wertheimer family. An inside source says the venture exemplifies Coty’s deal-making savvy and that it “adds a high-profile shareholder to [Coty’s] stock.” The stock market has responded well to the deal, and Coty’s shares closed up at 2.3 percent ($16.30) when the news was announced last week.
Founded in 1863 by a French actor who sought to provide a stage-appropriate palette for his thespian friends, Bourjois looks poised to beef up Coty’s portfolio with more heritage brands. Its holdings span celebrity and premium names from Lady Gaga’s Fame to Vivienne Westwood’s Naughty Alice.
Bourjois, which is sold at 23,000 locations worldwide, is viewed by Coty as a suitable complement to its other color-cosmetics brands, which the company seeks to expand. Chanel spokesman Michael Rena says, “We intend to examine the offer in more detail and enter constructive talks with Coty.”