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.