NEW YORK Coty has agreed to acquire Russian beauty maker Kalina Group's German subsidiary, Dr. Scheller Cosmetics. Under the deal, Kalina will retain the rights to the Dr. Scheller skin care business and related subsidiaries.
The acquisition further enhances Coty's portfolio, which now will include DSC's German makeup brand, Manhattan, and its anti-acne cosmetic brand, Manhattan Clearface. With these products, Coty will become the second-largest player in the German color cosmetics market, the company said. Coty's market share in the color cosmetics category in Germany will increase from 7% to 17%. Globally, the color cosmetics pillar will represent 25% of Coty's total portfolio. It also paves the way for Coty to achieve its goal of becoming a $7 billion beauty company by 2015, the company added.
"The acquisition of Dr. Scheller Cosmetics is a natural extension of our strategy to offer a well-balanced portfolio of brands, representing some of the leading consumer products in Germany," said Bernd Beetz, Coty CEO. "Their well-established brand, high-quality products, market presence and loyal consumers will complement and add value to Coty's existing offerings."
Financial terms of the transaction were not disclosed, and the transaction is subject to certain merger control approvals.