NEW YORK — Coty Inc. hasn’t wasted any time moving on to plan B: The beauty firm has hired underwriters to prepare for an initial public offering.
Coty is said to have hired JPMorgan Chase and Bank of America as underwriters for an IPO, which WWD reported Wednesday was a possible next step for the company. A third underwriter is expected to be appointed but has not been set. Coty has not filed a shelf registration with the Securities and Exchange Commission yet; that could come within the next month or so now that underwriters have been hired.
Coty is moving on from its aborted bid for Avon Products Inc., which it called off late Monday after Avon failed to meet Coty’s deadline for deciding whether to open its books.
WWD previously reported that Coty had spent several months working with another investment bank to actively prepare an IPO prior to making its initial bid for Avon in March. The financial community has long speculated about Coty’s interest in an IPO. The company has spent the last five years working to round out its product portfolio, which is heavy on fragrances, with skin care and cosmetics brands. In fact, in late 2010 alone, Coty bought OPI Products Inc., Philosophy Inc., Chinese skin care company TJoy and the German beauty brand Dr. Scheller Cosmetics AG, which includes the makeup line Manhattan. Further sparking chatter about an IPO, in January 2011, Coty received a cash infusion by two private equity firms, Berkshire Partners, based in Boston, and Rhône, which has offices in New York, London and Paris. An IPO could provide a logical exit strategy.
As for Avon, Coty’s decision to withdraw its bid has caused another wrinkle for the direct seller.
On Wednesday, the Los Angeles-based law firm Glancy Binkow & Goldberg LLP said it is investigating potential claims against the board of Avon Products Inc. for its “rejection of a proposal by Coty Inc. to acquire the company.”
In a statement, Glancy Binkow & Goldberg said its investigation “concerns whether the board of directors of Avon breached their fiduciary duties to stockholders by failing to pursue this opportunity, and whether the company has disclosed all material information to shareholders about the proposal. Coty’s offer would have provided shareholders with a premium of 27 percent over the three month volume-weighted average price per share. Given the company’s current troubles, including a bribery investigation, the 27 percent premium appears to be substantial.”
@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)
Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion
Eighty degree temperatures and outdoor installations at the annual Art Basel Miami Beach called for bright, elevated beachwear. See more street style pictures on WWD.com. #theyarewearing #ABMB (📷: @lifeinreverie)
Following September’s emotional tribute to her brother Gianni, Donatella Versace wanted to bring the spring show’s deep sense of intimacy to her @versace_official pre-fall collection. Donatella found inspiration in Versace Palazzo in Milan and from Gianni’s opulent apartment. Archival patterns and new motifs were splashed on silk shirtdresses and fitted jersey frocks. See the rest of the photos on WWD.com. #wwdfashion
Demna Gvasalia continues to shake up the Paris fashion calendar — and experiment with new runway timetables for his @vetements_official brand. WWD has learned that Vetements plans to stage its next coed show for the fall 2018 season on January 19 during Men’s Fashion Week in the French capital. Details about the timing and venue have not been confirmed — stay tuned on WWD.com to catch the latest. #wwdnews (📷: @giovanni_giannoni_photo)
@zacposen's go-to holiday gift? Cookies! "I'll usually bake cookies and send them as a gift," said the designer, who recently released his cookbook "Cooking With Zac: Recipes from Rustic to Refined." Get the recipe for his Brown Butter-Chocolate Chip Cookies via link in bio 🍪🍪🍪 #wwdeye #cookingwithzac
For @monsemaison’s pre-fall 2018 collection, Fernando Garcia and Laura Kim honed in on the brand’s many signatures — men’s wear, which was tweaked and feminized through deconstruction, proportion play and lots of bare shoulders. See the rest of the photos on WWD.com #wwdfashion (📷: George Chinese)
On Friday night, @yohjiyamamotoofficial received the Design for Asia Lifetime Achievement Award in Hong Kong. The 75-year-old designer has been celebrated for many years and is best known for his dark and avant-garde tailoring. “In my long career, in design, architecture, [I’ve been to] so many parties, this is the very first time that I have such a warm feeling, I really appreciate this,” Yamamoto said. #wwdfashion (📷: @dominiquemaitre)