Coty to acquire Del Laboratories
NEW YORK Coty Inc. is looking to bolster its beauty portfolio under the Coty Beauty umbrella with the acquisition of Del Laboratories, the maker of the Sally Hansen, N.Y.C. New York Color, La Cross, Orajel and Dermarest brands.
Under the terms of the agreement, all operations of DLI Holding, the parent company of Del Laboratories, will be merged with and into Coty. Financial terms of the deal were not disclosed. The transaction is expected to close by Dec. 31.
“We view the acquisition of DLI Holding Corp. as a natural extension of our strategy to offer a unique portfolio of brands that produce some of the strongest consumer franchises around the world,” stated Bernd Beetz, chief executive officer of Coty Inc. “Del’s established, well-regarded portfolio of quality products mesh well with our core offerings, and their strong presence in North America complements Coty Beauty and Coty’s international strengths.”
Added Charles Hinkaty, president and chief executive officer of Del Laboratories, “As our exceptional management team has guided Del through a sustained period of organic growth, cost reduction, supply chain enhancement and international expansion, we sought an ownership structure that would enable us to continue to build upon the organization’s many growth opportunities.”
Upon closing, Del Laboratories and DLI Holding Corp., which is principally owned by investment funds associated with Kelso & Co., will become wholly-owned subsidiaries of Coty.
According to Coty, the deal brings it one step closer to becoming a $5 billion beauty company. Coty ended the 2007 fiscal year with net sales of $3.3 billion.
The Coty Beauty brand portfolio includes Adidas, Aspen, Astor, Celine Dion, Chupa Chups, David and Victoria Beckham, Desperate Housewives, Esprit, Exclamation, Jovan, Kate Moss, Kylie Minogue, Miss Sixty, Miss Sporty, Pierre Cardin under a European license, Rimmel, Shania Twain, Stetson,Tonino Lamborghini and Vanilla Fields.
For the year ended Dec. 31, 2006, Del Laboratories posted sales of $425.9 million. Del’s cosmetics business accounted for approximately 80 percent of its 2006 net sales, which is focused on nail color, nail treatment, bleaches and hair removal products, depilatories, beauty implements and value cosmetics. Meanwhile, its OTC pharmaceutical business accounted for approximately 20 percent of its 2006 net sales. That segment is focused on oral analgesics, children’s toothpaste and sore throat relief and specialty OTC products.
Del’s products are available in more than 60,000 retail locations domestically. Internationally, it has experienced growth from its direct operations in Canada, the United Kingdom, Puerto Rico and Mexico and through distributors, licensees and joint venture relationships in approximately 60countries.
Maybelline introduces first mineral makeup line
Maybelline New York has introduced its new Mineral Power, its first complete line of mineral makeup for the mass market.
The Mineral Power line consists of an entire beauty regimen from start to finish: liquid foundation, powder foundation with a kabuki brush, liquid concealer, powder blush and finishing veil loose and pressed powder.
The key ingredient in the line is micro-minerals, natural mineral pigments that have been triple-refined. Prices range between $7.99 and $9.99.
“We are thrilled to bring our consumers a complete line of mineral products at an affordable price point and look to take a leadership position in this category,” stated Cheryl Vitali, senior vice president of Maybelline New York/Garnier. “We are providing our consumers with the products and education to give them a flawless, naturally luminous look.”
L’Oreal announces Brosnan as spokesperson, launches Web site redesign
PARIS L’Oreal Paris has appointed actor and producer Pierce Brosnan as its new spokesperson, representing the Men Expert skin care line in all continents apart from North America. The news came as the French beauty company also unveiled its revamped Web site.
Brosnan will join the family of L’Oreal Paris spokespeople, which includes such celebrities as Jane Fonda, Penelope Cruz and Scarlett Johansson.
“Pierce Brosnan seemed an emblematic spokesperson for the L’Oreal Men Expert line, with his unanimously renowned talent and his exceptional charisma. The brilliant, esteemed career of this daring actor is one worthy of much admiration,” stated Youcef Nabi, international general manager of L’Oreal Paris. “His self-assurance, allure and ‘understated’ virility make him an ideal spokesperson for our Men Expert skin care range.”
In other company news, L’Oreal has given its site, located at www.lorealparis.com, a makeover. The site, designed by digital agency R/GA, has interactive features such as the expert diagnostic tool that serves up personalized beauty recommendations. It covers four categories: skin care, hair care, hair color and cosmetics.
The tool prompts users to answer a series of questions, guided by videos of L’Oreal Paris experts. Once the questions are completed, visitors receive a customized solution. Other relevant content is presented as well, including educational video tutorials and expert tips. For example, someone wishing to color their hair red is given a “dream color,” along with other top color choices, plus tips, how-to’s, and tricks on achieving and maintaining their desired color.
The site also enables customers to compile a list of their favorite products; sign up for newsletters featuring on products, offers, celebrity news and beauty trends; and filter through the product catalog.
The new site officially launches in January 2008. New features, enhancements and updates will be added to keep the site fresh and relevant.