In an effort to bolster their position as a top global retailer of fragrances and cosmetics, Coty Inc. has announced that they have entered into a strategic partnership with Burberry. The agreement will result in Coty acquiring the exclusive global licensing rights to Burberry Beauty’s luxury fragrances and cosmetics.
“We are proud to welcome Burberry as a strategic partner of Coty,” stated Coty chief executive officer, Camillo Pane. “We look forward to growing further Burberry’s luxury beauty products using Coty’s world-class expertise in developing and bringing to market beauty brands.”
“We are delighted to partner with Coty, a world leader in luxury fragrance and make-up,” added Burberry chief executive officer and chief creative officer, Christopher Bailey. “Working with a global partner of Coty’s scale and expertise will help drive the next phase of Burberry Beauty’s development and position this business for growth.”
As part of the agreement, Coty will pay Burberry just under $140 million in cash considerations for the deal. Coty will also purchase over $50 million in inventory from Burberry upon its completion as well.
Burberry Beauty will be managed by Coty’s Luxury division as well, bringing their worldwide presence, expertise and luxury retail reach to Burberry’s fragrance and cosmetic products.
The long-term agreement is expected to be finalized in Quarter 4 of 2017.