COTYÂ has entered into an agreement to acquire the exclusive long-term global license rights for Burberry Beauty luxury fragrances, cosmetics and skincare.
According to a press statement, this strategic partnership combines Burberryâ€™s British heritage of innovation, craftsmanship and design with COTYâ€™s expertise and leadership in luxury beauty products.Â Under the agreement,Â COTY will develop, manufacture and distribute the full range of Burberry Beauty products globally.
The Burberry Beauty business will be managed within COTYâ€™s Luxury division. Headquartered in Paris,Â COTY Luxury develops, produces, markets and distributes globally a range of fashion house fragrances includingÂ Gucci,Â Marc Jacobs,Â Hugo Boss,Â Calvin Klein,Â Alexander McQueen,Â Bottega VenetaÂ andÂ Balenciaga, as well as premium cosmetics and skin care under theÂ philosophy,Â LancasterÂ andÂ GucciÂ brands.
Through the partnership the two will work to deliver beauty strategy, innovation, supply-chain and go-to-market.Â Burberry beauty products will be sold in leading luxury beauty retailers globally as well as inÂ BurberryÂ stores and digital channels. The dealÂ isÂ expected to close in calendar Q4 2017, at which pointÂ COTY will buy from Burberry approximately ÂŁ50M of inventory.Â The deal is subject to customary regulatory approvals.
Camillo Pane, CEO COTY, said, â€śWe are proud to welcome Burberry as a strategic partner of COTY.Â We look forward to growing further Burberryâ€™s luxury beauty products using COTYâ€™s world-class expertise in developing and bringing to market beauty brands.â€ť
Edgar Huber, presidentÂ COTY Luxury, added, â€śBurberry is an iconic luxury brand. Â It fits perfectly with COTY Luxuryâ€™s portfolio, which includes contemporary and globally relevant prestige beauty brands.Â We are uniquely positioned to develop Burberry Beauty to the next level. Â This is another significant step in building COTYâ€™s Luxury division.â€ť
Christopher Bailey, chief creative and chief executive officer, Burberry, said, â€śWe are delighted to partner with COTY, a world leader in luxury fragrance and make-up. Â Working with a global partner of COTY’s scale and expertise will help drive the next phase of Burberry Beautyâ€™s development and position this business for growth.â€ť