In a move to strengthen its foothold in masstige color cosmetics, Coty Inc., which went public in June 2013, agreed to acquire Bourjois Paris from Chanel for 15 million shares, worth $238 million.
“The anticipated addition of Bourjois not only strengthens our global color position; it materially increases our critical mass in France, Bourjois’ main market,” said Coty chairman and interim chief executive officer Bart Becht. “We are equally looking forward to having Chanel, a powerhouse in fashion and cosmetics, as a key shareholder in our company.”
The acquisition reflects Coty’s continued emphasis on investing in and growing power brands — like its current stars Sally Hansen and Marc Jacobs — and ties the interests of two billionaire families, the Wertheimers of Chanel and the Reimanns of Coty.
Bourjois is sold in more than 50 countries globally and was founded in 1863.