Coty intends to purchase Cosmetics Kylie
Cosmetic company Coty, finally comes to himself after the acquisition of several brands from Procter & Gamble. This is evidenced by the growth in stock prices, as well as in industry, there has been talk that the company is in talks to buy a stake in Joelle Cosmetics.
The stock exchange price of shares in Coty has increased 100% since the beginning of 2019, which increased the company’s share price after for 2018, they fell by 67%. Recall that in the previous year, investors shied away from Coty, considering that the company is overloaded after the purchase of a portfolio of P & G, which was also not effective enough.
But under the close supervision of JAB Holdings, joint stock company, which in April acquired a controlling stake in Coty, a new management team was reported to have helped to instill a new sense of strength to the business. This gave the company a new confidence in the resumption of their goals is to continue to grow through mergers and acquisitions ambitions, which were supported by improved financial situation thanks to the support JAB. And now, according to Women’s Wear Daily, those same executives are now negotiating the purchase of a significant share in the success of the Kylie brand Cosmetics.
“At the moment, Coty can’t afford to make a major acquisition, although we think that JAB will find a way to be creative to the desired asset,” – said in a note to clients from Barclays investment wing. According to a recent report by WWD, Coty Chairman Peter Harf is currently engaged in negotiations with Cosmetics Kylie on the purchase of a controlling stake in this business, the cost of which could reach $ 600 million.
In March this year, Kylie Cosmetics was estimated at $ 900 million, according to Forbes. Thanks to personal assets worth about 100 million dollars Kylie Jenner, owner and founder of the company, became the youngest female billionaire in the world at the age of 21. In may 2019 Kylie Cosmetics debuted range of products for skin care produced in the market as dermocosmetics, including means for washing the face, scrubs, moisturizers and wipes for removing makeup.