Coty and Chanel have entered into exclusive negotiations after Coty offered to acquire the Bourjois cosmetics brand from Chanel for 15 million Class A Coty shares. Upon successful completion of the transaction, Chanel would therefore become an important shareholder of U.S. firm.
According to Bart Becht, Chairman and Interim CEO of Coty Inc., the Bourjois brand is are highly complementary to Cotyʼs existing colour cosmetics portfolio, in particular with its “leadership positions in a number of Western European countries where Coty is seeking to bolster its presence.”
Bourjoisʼ portfolio of colour cosmetic products are sold through approximately 23,000 points of sale in more than 50 countries around the world, including Western Europe, the Middle East and Asia. Bourjois was founded in 1863, by French actor Joseph-Albert Ponsin, who developed a line of colour cosmetics for his fellow actors.
A spokesperson at Chanel said the company intends to examine the offer in more detail and enter constructive talks with Coty. The proposal is subject to customary closing conditions, including regulatory clearances. The relevant employee representative bodies will be consulted prior to entering into a definitive agreement.