Coty and Younique to Part and Focus on the Development of Their Respective Strengths
NEW YORK--(BUSINESS WIRE)--Aug 28, 2019--
Coty (NYSE:COTY) and Younique today announced a mutual decision to terminate their partnership. Given the different nature of the companies’ business models and the need for a strong and specific focus to successfully improve fundamentals, Coty and Younique have agreed to part and focus on their respective strengths. Coty has recently announced a comprehensive roadmap to improve performance and unlock significant value in its core business.
Coty will sell its controlling stake to Younique’s original founders upon regulatory clearance, as soon as practicable. The conditions of the exit will not be made public, however no further adjustment to Coty intangible asset base is expected as a result of this transaction.
Derek Maxfield, CEO, Younique declared, “I am grateful for the collaboration and knowledge we have gained from our partnership with Coty. Younique is excited to return to our entrepreneurial roots armed with the knowledge and insights gained from the partnership experience. We remain focused on serving our Presenters with innovative products and leading-edge digital selling tools that make Younique the easiest way to start and run a direct sales business.”
Pierre Laubies, CEO, Coty, said, “We wish Derek and the teams all the best for Younique’s next chapter. Our presence in Younique for the past few years has been an accelerator of our digital strategy, which has today become one of Coty’s strengths. We now need to focus on our turnaround plan and the significant opportunities which lie in our Luxury, Consumer and Professional businesses.”
About Coty Inc.
Coty is one of the world’s largest beauty companies with an iconic portfolio of brands across fragrance, color cosmetics, hair color and styling, and skin and body care. Coty is the global leader in fragrance, a strong number two in professional hair color & styling, and number three in color cosmetics. Coty’s products are sold in over 150 countries around the world. Coty and its brands are committed to a range of social causes as well as seeking to minimize its impact on the environment. For additional information about Coty Inc., please visit www.coty.com.
Forward Looking Statements
Certain statements in this communication are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Coty’s current views with respect to, among other things, the timing, terms and conditions of the exit transaction and the expected impact on Coty’s intangible asset base is expected as a result of the transaction. These forward-looking statements are generally identified by words or phrases, such as “anticipate”, “are going to”, “estimate”, “plan”, “project”, “expect”, “believe”, “intend”, “foresee”, “forecast”, “will”, “may”, “should”, “outlook”, “continue”, “temporary”, “target”, “aim”, “potential”, “goal” and similar words or phrases. These statements are based on certain assumptions and estimates that Coty considers reasonable, but are subject to a number of risks and uncertainties, many of which are beyond Coty’s control, which could cause actual events or results (including Coty’s financial condition, results of operations, cash flows and prospects) to differ materially from such statements, including risks and uncertainties relating to:
When used herein, the term “includes” and “including” means, unless the context otherwise indicates, including without limitation. More information about potential risks and uncertainties that could affect Coty’s business and financial results is included under the heading “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Coty’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2019 and other periodic reports Coty has filed and may file with the SEC from time to time.
All forward-looking statements made in this release are qualified by these cautionary statements. These forward-looking statements are made only as of the date of this release, and Coty does not undertake any obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise.
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PUB: 08/28/2019 06:30 AM/DISC: 08/28/2019 06:30 AM