French luxury group Chanel will sell its cosmetics brand Bourjois to perfume manufacturer Coty in return for 4.2 % of the American company's shares. In total, Chanel will get 15 million shares, which means Bourjois is valued at 190 million euro.
With Chanel since 1898
Bourjois sells make-up, shower gel, deodorant and perfume and has been a part of Chanel since 1898. It is on sale in some 50 countries and is even France's third best-selling wholesale cosmetics brand, trailing Gemey Maybelline and L'Oréal Paris.
Analysts believe the sale makes sense: "The Wertheimer family (which owns the French luxury group) and Chanel want to focus on the very selective", while Bourjois has a mass production image. That does not fit the "exclusive character" Chanel wants to portray.
Alongside Chloé, Calvin Klein and Marc Jacobs
""We are looking forward to having the Bourjois brand as part of our portfolio of leading beauty products, as well as welcoming CHANEL as a Coty shareholder,” said Bart Becht, Chairman and Interim CEO of Coty Inc. The company was founded in 1904 by Frenchman François Coty, who had worked at Chanel as one of its 'noses' before moving to the United States.
Coty, which commercialises perfumes from Chloé, Calvin Klein and Marc Jacobs, has always wanted to become a worldwide player in the cosmetics business. It went public in June 2013 and manages a 4.6 billion dollar (3.6 billion euro) yearly turnover. Its main shareholder is John A. Benckiser holding.
Chanel has a 4.75 billion euro yearly turnover and is number two in the luxury market, behind Louis Vuitton. The company is still privately owned.