Home / alt.fashion / Friday, May 20, 2005
Coty to Buy Unilever's Perfume Business – article
chillled <chill...@hotmail.comeuppance>
5/20/2005 11:58:50 PM
05.20.2005, 04:05 PM
Coty Inc., one of the world's top perfume and cologne makers, on Friday
said it is buying Unilever's fragrance business for $800 million,
bulking up its portfolio with megabrand Calvin Klein and other lines
such as Vera Wang and Chloe.
Privately held Coty, based in New York, is looking to rank among the
five largest beauty products companies worldwide and said adding
Unilever's business, with sales of more than $600 million last year,
will help it advance that goal.
Bernd Beetz, Coty's chief executive, told The Associated Press that he
has been eyeing Unilever's portfolio for a while as a way to put the
company on a "higher level."
"If you look at Unilever Cosmetics International's portfolio, you see
the Calvin Klein megabrand – something we did not have," Beetz said.
"We're really strengthening our capabilities in that market."
Still, Beetz said his company has been growing at a double–digit rate
over the last four years, and took in more than $2 billion in sales in
2004, the same year Coty acquired rights to the Kenneth Cole and Marc
Jacobs brands. Aside from perfumes including adidas, Stetson and Celine
Dion, Coty also makes a range of bath and foot– and sun–care products.
Consumer products giant Unilever, the Anglo–Dutch maker of Ben & Jerry's
ice cream, Lipton drinks and Dove soap, has been whittling down brands
to concentrate on the heart of its business, food and personal care, as
it battles with rivals like Procter & Gamble Co. and Kraft Foods Inc.
"This is an excellent strategic move for Unilever and one that is fully
in line with our strategy to focus on our core categories," Unilever CEO
Patrick Cescau said, in a statement. The company is a joint venture of
Unilever NV and Unilever PLC.
Earlier this month, Unilever said its first–quarter profit grew 24
percent as net sales inched higher on improved U.S. business that offset
weak demand in Europe. That contrasted sharply with the company's 2004
earnings, which were down 31 percent on lower sales.
Prudential Equity analyst John McMillin said selling the fragrance
division has been in the works for a few years and ended up at a price
that was above initial expectations.
While the unit only accounts for about 1 percent of Unilever's sales,
its performance can be volatile, and the remaining company is more
stable, McMillin said in a note to clients.
Unilever's fragrance business will become part of Coty's Lancaster Group
Worldwide, which is looking to boost U.S. sales, grow its European
market and gain a stronger foothold in Asia, Coty said.
With the acquisition, Coty's overall sales should reach $2.7 billion to
$2.8 billion in 2005, according to Beetz. The deal calls for additional
payments to Unilever based on future sales, the company added.
"We are now entering a new phase in which we will greatly expand our
presence in the market for prestige and ultra–prestige brands on a
global basis," Beetz said in a statement detailing the transaction.
In addition to the fragrance licenses, Coty is also acquiring a
manufacturing and distribution center in Mt. Olive, N.J., and a
distribution center in Lille, France.
Coty said the deal is expected to close "in the coming months," pending
regulatory approval and other closing procedures.
Shares of Unilever NV climbed 83 cents to close at $67.83 in trading on
the New York Stock Exchange, while Unilever PLC shares rose 50 cents to
close at $40.31 at the exchange.
http://www.forbes.com/feeds/ap/2005/05/20/ap2045164.html
Coty Inc., one of the world's top perfume and cologne makers, on Friday
said it is buying Unilever's fragrance business for $800 million,
bulking up its portfolio with megabrand Calvin Klein and other lines
such as Vera Wang and Chloe.
Privately held Coty, based in New York, is looking to rank among the
five largest beauty products companies worldwide and said adding
Unilever's business, with sales of more than $600 million last year,
will help it advance that goal.
Bernd Beetz, Coty's chief executive, told The Associated Press that he
has been eyeing Unilever's portfolio for a while as a way to put the
company on a "higher level."
"If you look at Unilever Cosmetics International's portfolio, you see
the Calvin Klein megabrand – something we did not have," Beetz said.
"We're really strengthening our capabilities in that market."
Still, Beetz said his company has been growing at a double–digit rate
over the last four years, and took in more than $2 billion in sales in
2004, the same year Coty acquired rights to the Kenneth Cole and Marc
Jacobs brands. Aside from perfumes including adidas, Stetson and Celine
Dion, Coty also makes a range of bath and foot– and sun–care products.
Consumer products giant Unilever, the Anglo–Dutch maker of Ben & Jerry's
ice cream, Lipton drinks and Dove soap, has been whittling down brands
to concentrate on the heart of its business, food and personal care, as
it battles with rivals like Procter & Gamble Co. and Kraft Foods Inc.
"This is an excellent strategic move for Unilever and one that is fully
in line with our strategy to focus on our core categories," Unilever CEO
Patrick Cescau said, in a statement. The company is a joint venture of
Unilever NV and Unilever PLC.
Earlier this month, Unilever said its first–quarter profit grew 24
percent as net sales inched higher on improved U.S. business that offset
weak demand in Europe. That contrasted sharply with the company's 2004
earnings, which were down 31 percent on lower sales.
Prudential Equity analyst John McMillin said selling the fragrance
division has been in the works for a few years and ended up at a price
that was above initial expectations.
While the unit only accounts for about 1 percent of Unilever's sales,
its performance can be volatile, and the remaining company is more
stable, McMillin said in a note to clients.
Unilever's fragrance business will become part of Coty's Lancaster Group
Worldwide, which is looking to boost U.S. sales, grow its European
market and gain a stronger foothold in Asia, Coty said.
With the acquisition, Coty's overall sales should reach $2.7 billion to
$2.8 billion in 2005, according to Beetz. The deal calls for additional
payments to Unilever based on future sales, the company added.
"We are now entering a new phase in which we will greatly expand our
presence in the market for prestige and ultra–prestige brands on a
global basis," Beetz said in a statement detailing the transaction.
In addition to the fragrance licenses, Coty is also acquiring a
manufacturing and distribution center in Mt. Olive, N.J., and a
distribution center in Lille, France.
Coty said the deal is expected to close "in the coming months," pending
regulatory approval and other closing procedures.
Shares of Unilever NV climbed 83 cents to close at $67.83 in trading on
the New York Stock Exchange, while Unilever PLC shares rose 50 cents to
close at $40.31 at the exchange.
http://www.forbes.com/feeds/ap/2005/05/20/ap2045164.html
chillled <chill...@hotmail.comeuppance>
5/20/2005 11:58:50 PM
05.20.2005, 04:05 PM
Coty Inc., one of the world's top perfume and cologne makers, on Friday
said it is buying Unilever's fragrance business for $800 million,
bulking up its portfolio with megabrand Calvin Klein and other lines
such as Vera Wang and Chloe.
Privately held Coty, based in New York, is looking to rank among the
five largest beauty products companies worldwide and said adding
Unilever's business, with sales of more than $600 million last year,
will help it advance that goal.
Bernd Beetz, Coty's chief executive, told The Associated Press that he
has been eyeing Unilever's portfolio for a while as a way to put the
company on a "higher level."
"If you look at Unilever Cosmetics International's portfolio, you see
the Calvin Klein megabrand – something we did not have," Beetz said.
"We're really strengthening our capabilities in that market."
Still, Beetz said his company has been growing at a double–digit rate
over the last four years, and took in more than $2 billion in sales in
2004, the same year Coty acquired rights to the Kenneth Cole and Marc
Jacobs brands. Aside from perfumes including adidas, Stetson and Celine
Dion, Coty also makes a range of bath and foot– and sun–care products.
Consumer products giant Unilever, the Anglo–Dutch maker of Ben & Jerry's
ice cream, Lipton drinks and Dove soap, has been whittling down brands
to concentrate on the heart of its business, food and personal care, as
it battles with rivals like Procter & Gamble Co. and Kraft Foods Inc.
"This is an excellent strategic move for Unilever and one that is fully
in line with our strategy to focus on our core categories," Unilever CEO
Patrick Cescau said, in a statement. The company is a joint venture of
Unilever NV and Unilever PLC.
Earlier this month, Unilever said its first–quarter profit grew 24
percent as net sales inched higher on improved U.S. business that offset
weak demand in Europe. That contrasted sharply with the company's 2004
earnings, which were down 31 percent on lower sales.
Prudential Equity analyst John McMillin said selling the fragrance
division has been in the works for a few years and ended up at a price
that was above initial expectations.
While the unit only accounts for about 1 percent of Unilever's sales,
its performance can be volatile, and the remaining company is more
stable, McMillin said in a note to clients.
Unilever's fragrance business will become part of Coty's Lancaster Group
Worldwide, which is looking to boost U.S. sales, grow its European
market and gain a stronger foothold in Asia, Coty said.
With the acquisition, Coty's overall sales should reach $2.7 billion to
$2.8 billion in 2005, according to Beetz. The deal calls for additional
payments to Unilever based on future sales, the company added.
"We are now entering a new phase in which we will greatly expand our
presence in the market for prestige and ultra–prestige brands on a
global basis," Beetz said in a statement detailing the transaction.
In addition to the fragrance licenses, Coty is also acquiring a
manufacturing and distribution center in Mt. Olive, N.J., and a
distribution center in Lille, France.
Coty said the deal is expected to close "in the coming months," pending
regulatory approval and other closing procedures.
Shares of Unilever NV climbed 83 cents to close at $67.83 in trading on
the New York Stock Exchange, while Unilever PLC shares rose 50 cents to
close at $40.31 at the exchange.
http://www.forbes.com/feeds/ap/2005/05/20/ap2045164.html
Coty Inc., one of the world's top perfume and cologne makers, on Friday
said it is buying Unilever's fragrance business for $800 million,
bulking up its portfolio with megabrand Calvin Klein and other lines
such as Vera Wang and Chloe.
Privately held Coty, based in New York, is looking to rank among the
five largest beauty products companies worldwide and said adding
Unilever's business, with sales of more than $600 million last year,
will help it advance that goal.
Bernd Beetz, Coty's chief executive, told The Associated Press that he
has been eyeing Unilever's portfolio for a while as a way to put the
company on a "higher level."
"If you look at Unilever Cosmetics International's portfolio, you see
the Calvin Klein megabrand – something we did not have," Beetz said.
"We're really strengthening our capabilities in that market."
Still, Beetz said his company has been growing at a double–digit rate
over the last four years, and took in more than $2 billion in sales in
2004, the same year Coty acquired rights to the Kenneth Cole and Marc
Jacobs brands. Aside from perfumes including adidas, Stetson and Celine
Dion, Coty also makes a range of bath and foot– and sun–care products.
Consumer products giant Unilever, the Anglo–Dutch maker of Ben & Jerry's
ice cream, Lipton drinks and Dove soap, has been whittling down brands
to concentrate on the heart of its business, food and personal care, as
it battles with rivals like Procter & Gamble Co. and Kraft Foods Inc.
"This is an excellent strategic move for Unilever and one that is fully
in line with our strategy to focus on our core categories," Unilever CEO
Patrick Cescau said, in a statement. The company is a joint venture of
Unilever NV and Unilever PLC.
Earlier this month, Unilever said its first–quarter profit grew 24
percent as net sales inched higher on improved U.S. business that offset
weak demand in Europe. That contrasted sharply with the company's 2004
earnings, which were down 31 percent on lower sales.
Prudential Equity analyst John McMillin said selling the fragrance
division has been in the works for a few years and ended up at a price
that was above initial expectations.
While the unit only accounts for about 1 percent of Unilever's sales,
its performance can be volatile, and the remaining company is more
stable, McMillin said in a note to clients.
Unilever's fragrance business will become part of Coty's Lancaster Group
Worldwide, which is looking to boost U.S. sales, grow its European
market and gain a stronger foothold in Asia, Coty said.
With the acquisition, Coty's overall sales should reach $2.7 billion to
$2.8 billion in 2005, according to Beetz. The deal calls for additional
payments to Unilever based on future sales, the company added.
"We are now entering a new phase in which we will greatly expand our
presence in the market for prestige and ultra–prestige brands on a
global basis," Beetz said in a statement detailing the transaction.
In addition to the fragrance licenses, Coty is also acquiring a
manufacturing and distribution center in Mt. Olive, N.J., and a
distribution center in Lille, France.
Coty said the deal is expected to close "in the coming months," pending
regulatory approval and other closing procedures.
Shares of Unilever NV climbed 83 cents to close at $67.83 in trading on
the New York Stock Exchange, while Unilever PLC shares rose 50 cents to
close at $40.31 at the exchange.
http://www.forbes.com/feeds/ap/2005/05/20/ap2045164.html