PARIS — Coty Inc. has renewed its longstanding partnership with distributor Chalhoub Group in the Middle East to strengthen its operations in region.
The companies had formed a Dubai-based subsidiary, called Coty Middle East FZCO, in mid-2004.
“Following the merger of the P&G specialty beauty business into Coty, finalized in October 2016, both parties have agreed to reinforce their partnership to allow the integration of the P&G specialty beauty brands within the joint venture and hence have set up a revised structure to drive further growth,” the companies said in a joint statement on Wednesday.
“The Middle East region has enjoyed steady growth in beauty over the past decade and is a key market for Coty,” said Camillo Pane, Coty chief executive officer.
Coty and Chalhoub have signed an amendment of their shareholders’ agreement, giving Coty a 75 percent stake in the joint venture, reflecting the increased contribution of the P&G specialty beauty business.
Chalhoub, founded in 1955, focuses on retail, distribution and marketing services for luxury brands throughout the Middle East. The Dubai-based company has more than 12,000 employees in 14 countries and operates more than 650 stores.
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Coty is the world’s largest fragrance manufacturer, with brands including Gucci, Hugo Boss, Calvin Klein and Chloé. The New York-based company ranks second in professional salon hair color and styling, and third in color cosmetics globally. Other brands in its portfolio include Rimmel, Wella, Adidas and Guess.