A Done Deal: Coty Buys OPI
2010-11-29 | 10:43After weeks of speculation, Coty Inc. has signed a deal to acquire salon nail care specialist OPI Products Inc. The price tag is said to have come in at under $1 billion. Now, Coty is said to be looking at another opportunity.
The beauty giant has been on a buying spree and in recent weeks has struck deals to acquire skin care brand Philosophy from private equity firm The Carlyle Group and Dr. Scheller Cosmetics from Russian company Kalina.
Coty funded the acquistion with cash, input from its investors and debt. And more could be on the way in a few days.
"This acquisition will allow Coty to expand our presence in the nail care category via an important new channel of distribution: professional salons, and importantly will offer an even greater selection of products and choice to consumers," said Bernd Beetz, chief executive officer of Coty in a statement.
"Our management team will continue on with the company and OPI's business strategy will remain focused on the salon professional," said George Schaeffer, president and ceo of OPI, which was founded in 1981 and made a name for itself selling nail polishes with names such as Flashbulb Fuchsia and Dim Sum Plum.
What does everyone think about this? I wonder how this will affect the collections that come out and the rate that they are released! I also wonder if Coty will bring OPI products into more retail outlets.