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.