City Snapshot: Coty Takes $ 600 Million Stake in Kylie Jenner Cosmetics Brands | New

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Mainstream beauty giant Coty took a controlling stake in celebrity Kylie Jenner’s beauty business for $ 600 million.

Coty said his purchase of a 51% stake in the cosmetics and skin care industry would help develop the company into a “powerful global brand.”

He said, “Coty and Kylie will set and lead the strategic direction of the partnership, focusing on global expansion and entering new beauty categories.

“Kylie and her team will continue to lead all creative efforts in terms of product and communications initiatives, leveraging her unmatched global reach capabilities through social media.”

Jenner has over 270 million followers on her personal and branded social media, along with Kylie Cosmetics and Kylie Skin, two of the fastest growing and most engaged beauty brands on social media.

Coty expects the transaction to increase the net revenue growth of its core fragrance, cosmetics and skin care portfolio by more than 1% per year over the next three years.

The transaction is expected to be neutral for Coty’s bottom line in the first year, and accretive thereafter.

The acquisition is expected to be completed in the third quarter of fiscal 2020. All beauty product categories within the new partnership will continue to be sold through leading luxury beauty retailers as well as digital owned channels.

Coty said the transaction also represents a “key step” in its “ongoing transformation into a more focused and agile business.”

Coty will have overall responsibility for the development of the portfolio. In addition to his responsibilities within the partnership, Coty will act as a licensee for skin care, fragrance and nail products.

Coty CEO Pierre Laubies said, “We are delighted to welcome Kylie to our organization and our family. Combining Kylie’s creative vision and unprecedented consumer interest with Coty’s expertise and leadership in premium beauty products is an exciting next step in our transformation and will leverage our core strengths around perfumes, cosmetics and skin care, enabling Kylie’s brands to reach their full potential.

Kylie Jenner said, “I am delighted to partner with Coty to continue to reach even more Kylie Cosmetics and Kylie Skin fans around the world. I look forward to continuing to be creative and resourceful with each collection that consumers expect and to interact with my fans on social media. This partnership will allow me and my team to stay focused on the creation and development of each product while making the brand an international powerhouse in beauty.

Coty shares rose 2.6% in the US to $ 12.22 yesterday on the news.

Morning update

French retail giant Groupe Casino has signed a new € 2 billion revolving credit line with 21 French and international banks as part of its refinancing plan.

The facility, which expires in October 2023, includes two financial covenants, which will be tested quarterly (and for the first time on March 31, 2020).

It will depend on an adjusted gross debt to EBITDA ratio (the level of which varies over time) and an EBITDA to financial expense ratio that must be greater than 2.25x.

The amount of existing Casino and Monoprix syndicated revolving loans (currently € 2.25 billion), maturing in 2021 and 2022, will be reduced by the amounts granted to the new revolving loan. The existing bilateral Casino and Monoprix lines, for a total amount of € 0.64 billion, will be fully reimbursed and canceled.

In addition, Ahold Delhaize informed the market of the progress of its € 1 billion share buyback plan.

The group bought back 877,616 ordinary shares of Ahold Delhaize over the period from November 11, 2019 to November 15, 2019 inclusive at an average price of € 24.17 per share for a total amount of € 21.2 million.

The total number of shares repurchased under this program to date is 42,136,097 ordinary shares for a total amount of € 918 million.

In the markets this morning, the FTSE 100 started the day up 0.6% to 7,347.6 pts.

Early early risers include Naked Wines (WINE), up 2.9% to 267.5p, PayPoint, up 2.1% to 946p and Bakkavor, up 1.6% to 130.8p.

Falls so far this morning include Hilton Foods Group (HFG), down 1% to 1,000p, PZ Cussons (PZC), down 0.8% to 199.8p and Tate & Lyle (TATE ), down 0.5% to 703.8 percent.

Yesterday in the city

The FTSE 100 started the week up 0.1% to 7,307.7 points.

A number of grocery store names started the week in the spotlight, including Sainsbury’s (SBRY), which rose 2.3% to 209.6p, while Marks & Spencer (MKS) increased increased 2.2% to 181.5p and Morrisons (MRW) rose 1.5% to 199.3p.

Other retail winners yesterday included B&M European Value Retail (BME), up 2.3% to 386.6p, McColl’s (MCLS), up 2.3% to 45.5p and Ocado (OCDO ), up 1% to 1164p.

Among the biggest gains of the day were AG Barr (BAG), up 4% to 605p, FeverTree (FEVR), up 3.3% to 1,907p, Stock Spirits Group (STCK), up 2 , 5% to 200p and Domino’s Pizza Group, up 1.9%. at 295.6p.

Yesterday’s slaughterers included DS Smith (SMDS), down 1.3% to 382.9p, Glanbia (GLB), down 1.3% to € 11.30, Coca-Cola HBC (CCH), down 0.9% to 2,454p, Tate & Lyle (TATE), down 0.8% to 70-7.4p and Cake Box (CAKE), down 0.7% to 141.5p.

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