US firm Coty has entered into an agreement to acquire the exclusive long-term global license rights for Burberry Beauty luxury fragrances, cosmetics and skincare.
The companies said that the partnership will combine Burberry’s British heritage of innovation, craftsmanship and design with Coty’s expertise in luxury beauty products. Under the agreement, Coty will develop, manufacture and distribute the full range of Burberry Beauty products globally.
Burberry Beauty revenues were £203m last year. Coty, whose beauty brands include Calvin Klein and Rimmel, will pay £130m for the licence lasting at least ten years. It will also buy around £50m worth of stock from Burberry once the deal is completed towards the end of the year.
Edgar Huber, President of Coty Luxury, said: “Burberry is an iconic luxury brand. It fits perfectly with Coty Luxury’s portfolio, which includes contemporary and globally relevant prestige beauty brands. We are uniquely positioned to develop Burberry Beauty to the next level. This is another significant step in building Coty’s Luxury division.”
Christopher Bailey, Chief Creative and Chief Executive Officer at Burberry, added: “We are delighted to partner with Coty, a world leader in luxury fragrance and make-up. 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.”
Headquartered in Paris, Coty Luxury develops, produces, markets and distributes globally a range of fashion house fragrances including Gucci, Marc Jacobs, Hugo Boss, Calvin Klein, Alexander McQueen, Bottega Veneta and Balenciaga, as well as premium cosmetics and skin care under the philosophy, Lancaster and Gucci brands.