BEAUTY CARE

Del sale to Coty closes as planned

BY Antoinette Alexander

NEW YORK It’s official. Coty Inc. closed on its acquisition of Del Laboratories—the maker of the Sally Hansen, N.Y.C. New York Color, La Cross, Orajel and Dermarest brands—on Dec. 31 as expected. Financial terms of the deal were not disclosed.

Under the terms of the agreement, all operations of DLI Holding, the parent company of Del Laboratories, will merge into Coty. Del Labs and DLI Holding Corp., which was principally owned by investment funds associated with Kelso & Co., have become wholly owned subsidiaries of Coty.

As reported, the deal brings Coty one step closer to becoming a $5 billion beauty company. Coty ended the 2007 fiscal year with net sales of $3.3 billion. It also expands Coty Beauty’s portfolio and gives the company a foothold in the OTC pharmaceutical business.

“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, in announcing the deal. “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.”

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, Del’s 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 60 countries.

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FDA issues tools to improve cosmetics and food safety practices

BY Antoinette Alexander

WASHINGTON The Food and Drug Administration has announced the release of new tools to further improve the security of food and cosmetics.

“The tools FDA is providing will help members of the food and cosmetic industry identify opportunities to better guard against intentional contamination of their products,” stated David Acheson, acting director of the Center for Food Safety and Applied Nutrition.

The tools are companion pieces designed to make previously issued industry guidance documents more user-friendly and practical. In 2003, the FDA issued the Food and Cosmetic Security Preventive Measures Guidance documents. These documents are aimed at operators of food and cosmetic establishments, as well as businesses that produce, process, store, repack, relabel, distribute, sell or transport foods, food ingredients and cosmetics, to help minimize the risk of malicious, criminal or terrorist actions involving products under their control.

The FDA has repackaged the information found in the guidance documents and created a corresponding self-assessment tool for each document. By using the tools, industry members can get a quick and detailed assessment of the measures they currently have in place. The idea is it makes it easy to see where meaningful improvements to their current practices can be made.

How it works: the tool asks the participant to mark the presence of a variety of protection measures with a Y (Yes), N (No), N/A (Not Applicable) or Don’t Know for each item.

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JICC releases new coupon system aimed at improving efficiency

BY Tara Smith

WASHINGTON The Joint Industry Coupon Committee of the Grocery Manufacturers Association and the Food Marketing Institute today announced the release of specifications for a new coupon system. The new guidelines, the result of a five-year coupon reengineering project by the JICC and GSI US, offer solutions to challenges encountered by manufacturers and retailers with the current 22-year-old system.

The implementation of the new system will take place over a period of two years with manufacturers taking the first step of printing the new data bar alongside the original U.P.C.—a bar code on their coupons. Changes to the face of coupons will be noticeable as early as Jan. 1, 2008. The U.P.C. bar code will be fully retired in 2010 when all retailers will scan the GSI DataBar.

“The GSI DataBar coupon implementation will provide consumers, manufacturers and retailers expanded, accurate and efficient offer-capability in printed form on a broader range of products,” said JICC co-chair Alan Williams, vice president of applications development at the Ahold Information Services division of Ahold USA.

The Application Guidelines are available through GMA, FMI and GSI US.

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