Coty Inc. plans to reorganize its top command and move its executive headquarters to London.
The beauty firm, which is currently based in the Empire State Building in New York, plans to reorganize its corporate structure following the completion of its $12.5 billion deal to purchase a sizable chunk of Procter & Gamble Co.’s beauty business.
The company will also continue to operate out of its offices in New York, Paris and Geneva, said a company spokeswoman.
“The new Coty will bring together a very experienced and diverse executive team, skilled at managing complex global consumer operations and driving innovation, creativity and growth, all of which are a prerequisite for future success,” stated Bart Becht, Coty’s chairman and interim chief executive officer. “This deeply experienced team combined with the new category-focused and consumer-centric structure, and our portfolio of world-class brands, are all expected to play key roles in making Coty a strong global leader and challenger in beauty and driving profitable growth and shareholder value over time.”
The relocation-reorganization effort is the latest change for the company, which in recent years has been in a constant state of transformation marked by executive changes and acquisitions.
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Coty’s most dramatic move will come in the second half of 2016, with the close of its merger with certain P&G beauty businesses.
Wall Street seemed little phased by Coty’s relocation plans, but one analyst, who asked not to be named, said, “We are seeing a company being built before our very eyes.”
Coty’s appetite for acquisition continues to grow. On Monday, the company said it had entered into a definitive agreement to purchase the personal-care and beauty businesses from Hypermarcas S.A. in Brazil for about $1 billion.
The company’s stock price on Tuesday remained largely unchanged to close on Tuesday at $29.61, or down 0.17 percent on the New York Stock Exchange.
Following the P&G deal, which is expected to close in the second half of 2016, the company will be organized into three divisions, namely Coty Luxury, focused on fragrance and skin care; Coty Consumer Beauty, focused on color cosmetics, retail hair coloring and styling products and body care, and Coty Professional Beauty, focused on servicing salon owners and professionals in both hair and nail care.
Each new division will be led by a president. Edgar Huber will be the president of Coty Luxury and be based in Paris; P&G’s Esi Eggleston Bracey will serve as president of Coty Consumer Beauty and will relocate from Geneva to New York, and P&G’s Sylvie Moreau will be president of Coty Professional Beauty and remain in Geneva.
Under the new structure, Coty will also create a department called Growth and Digital, led by Camillo Pane, who was most recently senior vice president, global category officer of consumer health at Reckitt Benckiser. He will remain in London.
Coty’s leadership team will also include Becht in his current role as chairman and interim ceo, currently based in London; Patrice de Talhouet, in his current role as chief financial officer who will transition from New York to London; Mario Reis as chief global supply officer who will remain in Geneva; Jules Kaufman, chief legal officer and secretary who will transition from New York to London; Ralph Macchio, chief science officer, who will remain in Morris Plains, N.J., and Sebastien Froidefond, chief human resources officer, who will transition from Paris to London.
Jean Mortier will retire from Coty, and be succeeded effectively immediately by Huber as president of global markets. Mortier plans to stay with Coty through June as a special adviser to the ceo.
The string of changes orchestrated by Becht have Wall Street weighing Coty’s future potential. Deutsche Bank analyst Bill Schmitz wrote in a research note on Tuesday, “While organic growth has and should remain weak, largely due to fragrance category softness, we maintain our ‘buy’ on thesis that company is building a bigger and better beauty empire, with the transformational acquisition of P&G’s fragrance, cosmetics and hair colorant brands and smaller agreement to buy Hypermarcas’ Brazilian beauty and personal-care assets as part of a long-term strategy under ceo Bart Becht to consolidate the fragmented global beauty industry, seeking to emerge as a real contender to market leader L’Oreal.”
The company will continue to be incorporated in Delaware and traded on the New York Stock Exchange.
Coty moved into its current headquarters in 2014, redesigning five floors of the Empire State Building for the purpose.
A Coty spokeswoman said management plans to discuss the upcoming changes on Thursday during the company’s first-quarter earnings call.