Jennifer Weil and Kathryn Hopkins
5 min read
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Could it be the end of an era for one of beauty’s most storied names?
Buzz is swirling that Coty Inc. is looking for buyers, but it would not be a one-and-done deal, according to multiple industry sources.
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While the sources said talks are in the very early stages, a number have told WWD that Coty, jointly listed in New York and Paris, is exploring a potential sell-off in two parts. That would involve its Luxury division, counting brands such as Gucci, Burberry, Jil Sander and Hugo Boss, and its Consumer division, with mass brands including Covergirl, Max Factor and Rimmel London.
A Coty spokeswoman reached Monday said the company does not comment on rumor and speculation.
For Coty’s luxury business, sources have said that the company is in talks with Interparfums, although they speculated that Interparfums would want only some of the fragrance brands — namely Burberry and Hugo Boss.
Burberry Goddess, released in 2023, remains Coty’s biggest launch ever, while Hugo Boss became the number-two men’s fragrance franchise in Europe in the second half of last year.
For this reason, a potential deal for Coty’s fragrance business could come in the form of a strategic partnership or merger, versus an outright acquisition, one source suggested.
“Overall, we are always inclined to look when opportunities present themselves,” said a spokesman for Interparfums SA on Monday.
Interparfums is said to have had already made an offer to Coty for the blockbuster Burberry license, which Interparfums previously held through end-2013.
Meanwhile, the Gucci fragrance and beauty license would likely be short-lived anywhere but at parent company Kering. Time is ticking on that jewel in the crown of Coty’s Luxury division. It has long been believed that Kering plans to take Gucci fragrance and beauty activity in-house once the license expires, as the luxury group is building out its beauty division.
WWD articles from past decades repeatedly cited that the original license for Gucci fragrances had a 50-year duration, which makes the expiration sometime in 2028. Coty chief executive officer Sue Nabi also hinted at that date when she told journalists in July 2023 that there would be no discussion of the renewal of any of Coty’s licenses for at least another five years.
According to some industry sources, the sticking point regarding a potential sale of Coty is whether the group could find a buyer for its mass division.
