US fragrance and cosmetics manufacturer Coty Inc. and TJoy Holdings, a company headquartered in the Cayman Islands have entered into a share purchase agreement which calls for Coty to acquire a majority stake in TJoy Holdings. The two companies anticipate closing the deal in January 2011.
TJoy was established in 1995 in Suzhou, China. It has 4 manufacturing plants across China and owns China’s leading skin care brands such as TJoy and Pure Plant Extract, which feature a comprehensive product portfolio.
According to Coty, this investment will extend the company’s skin care business by providing it with a solid foothold in China through TJoy’s existing distribution channels, and also gives Coty a platform to expand its R&D capabilities. "The TJoy investment positions Coty as a major player in China, solidifying our position as a global beauty leader," commented Bernd Beetz, CEO, Coty Inc.
The financial terms of the transaction were not disclosed.
The acquisition of TJoy tops a recent series of external growth operations recently finalized by Coty. In November, Coty announced three major deals, most recently the purchase of nail-polish maker OPI Products. Coty also agreed to buy US skin-care brand Philosophy and 100% shares of German make-up manufacturer Dr. Scheller Cosmetics.