Following rumours that it was in negotiations to buy up skin care and nail polish experts OPI Products, fragrance-maker Coty has announced that it will be acquiring the company.
Coty says that the acquisition will enhance its colour cosmetic portfolio via the addition of over 200 colours of OPI Nail Lacquer's chip-resistant formula which it describes as 'an international success.'
"We view the acquisition of OPI as complementary to Coty and a natural extension of our strategy to offer a unique portfolio of brands that produce some of the best known consumer products around the world," said Bernd Beetz, CEO of Coty.
OPI specialises in own-brand nail polish and is said to be one of the major suppliers to salons in North America, while also having a significant presence in the sectors of hand-and-foot care and body lotion. The company, based in Hollywood, California, has annual sales of approximately $300m.
The transaction is said to be subject to customary regulatory approvals and financial terms have not been disclosed, although it is rumoured that the deal could value OPI at as much as $1bn.
Expansion in other markets
Coty's fragrance division now accounts for approximately 65 per cent of its estimated $4.5bn yearly revenues with names such as Sarah Jessica Parker, Celine Dion, Esprit and Calvin Klein included in its fragrance portfolio.
But despite being the world's largest fragrance manufacturer, Coty has been branching out of this arena with a number of deals including the acquisition, earlier this month, of German colour cosmetics player Dr. Scheller Cosmetics, from Russia-based Kalina.
This acquisition was said to represent an increase of Coty's market share in Germany's colour cosmetics category from 7 per cent to 17 per cent. It also saw the global colour cosmetics pillar of Coty's total portfolio reach 25 per cent and took it a step closer, Coty claimed, to its goal of becoming a $7bn (€5.1bn) beauty company by 2015.
Its presence in the skin care market has also been emphasised with the recent news of Coty's plans to acquire skin care company philosophy. This was said to "further strengthen and extend Coty Prestige's current skin care portfolio," according to a Coty spokesperson.