Effective Subject to Completion of the Merger with P&G’s
Fragrance, Color Cosmetics, Salon Professional & Hair Color and Styling
NEW YORK–(BUSINESS WIRE)–Coty Inc. (NYSE:COTY) announced today a new organizational structure and
the future leadership team for the company, both of which will become
effective subject to completion of Coty’s merger with The Procter &
Gamble Company’s (NYSE:PG) fine fragrance, color cosmetics, salon
professional and hair color and styling businesses (“P&G Specialty
Beauty Business”). These changes are expected to best position the
company to advance Coty’s global leadership position in Beauty.
Bart Becht, Chairman and Interim CEO of Coty commented: “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. 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.”
Coty’s new organizational structure will be category focused, putting
the consumer first, by specifically targeting how and where they shop
and what and why they purchase. Each Division will have full end-to-end
responsibility to optimize the consumers’ beauty experience in their
relevant categories and channels in this new organizational design and
translate this into profitable growth. Accordingly, post-merger, Coty’s
business will be organized into three divisions:
- Coty Luxury Division, focused on fragrances and skin care
Coty Consumer Beauty Division, focused on color cosmetics, retail hair
coloring and styling products and body care
Coty Professional Beauty Division, focused on servicing salon owners
and professionals in both hair and nail care
Coty will also be launching a new department, called Growth and Digital,
which will be focused on accelerating growth. It will regularly review
the company’s portfolio strategy and focus on working with each of the
three divisions to improve its capabilities in innovation, sales and
traditional and digital marketing.
Each of the Luxury, Consumer Beauty, and Professional Beauty divisions
will be led by a President, who will be supported in the areas of supply
chain, finance, human resources and information services. The divisions
will be overseen by an executive team consisting of the three
Presidents, the Functional Heads and the Chief Executive Officer. The
executive team will provide strategic direction, pursue M&A
opportunities, build out corporate capabilities and address public
As part of the new organizational structure, Coty plans to relocate its
executive management offices to London. Being operationally located in
London will allow Coty to more effectively operate as a global leader,
with closer proximity to the company’s key strategic markets around the
world. The executive management team expected to be based in London,
includes, but is not limited to, the office of the Chairman and Chief
Executive Officer, Finance, Human Resources, Legal and Growth and
Digital. The company will continue to be incorporated in Delaware and
traded on the New York Stock Exchange.
The new Coty leadership team combines the expertise and talents of
executives from Coty, P&G Specialty Beauty and other leading companies.
These highly experienced team members, all of whom have extensive
experience nurturing and growing consumer brands, bring deep and
complementary skills, which the company plans to leverage to benefit
Coty employees, licensors, customers, suppliers and shareholders.
Bart Becht, Chairman and Interim Chief Executive Officer – Mr.
Becht will continue to be responsible for making Coty into a global
leader and challenger in Beauty and enhancing shareholder value in the
process. Before joining Coty in 2011 as chairman, Mr. Becht served as
chief executive officer of Reckitt Benckiser, a leading global consumer
goods company, from 1995 to 2011. He has over 30 years of business
experience building consumer brands around the world. Mr. Becht will
remain based in London following the close of the transaction.
Patrice de Talhouët, Chief Financial Officer – Mr. de Talhouët
will continue to oversee the finance organization. In addition, he will
be responsible for all M&A activities as well as information systems and
real estate. Prior to joining Coty, he spent seven years at Mars, Inc.
in various executive finance positions and 12 years at Alcatel-Lucent.
Mr. de Talhouët will transition from New York to London following the
close of the transaction.
Camillo Pane, Chief Growth and Digital Officer – Mr. Pane will
advise on Coty’s portfolio strategy and be responsible for the
development of Coty’s innovation, marketing and sales capabilities
across all divisions, as well as directing Coty’s digital media and
e-commerce activities. He spent almost 20 years at Reckitt Benckiser,
and was most recently Reckitt’s Senior Vice President, Global Category
Officer Consumer Health. Mr. Pane will be based in London following the
close of the transaction.
Edgar Huber, President Coty Luxury – Mr. Huber will oversee
Coty’s Fragrances and Skin Care division. Mr. Huber is an accomplished
executive with over 25 years of experience in building brands across the
beauty and fashion industry. Mr. Huber spent 15 years at L’Oréal, the
majority of which was in the L’Oréal Luxury Products Division working on
brands such as Ralph Lauren Fragrances, VIKTOR AND ROLF, Yves Saint
Laurent Beauty and Giorgio Armani Cosmetics. Most recently he was
President and Chief Executive Officer of Lands’ End. Mr. Huber will be
based in Paris following the close of the transaction.
Esi Eggleston Bracey, President, Coty Consumer Beauty – Mrs.
Eggleston Bracey will oversee Coty’s Color Cosmetics, Hair Coloring and
Styling, and Body Care division. She is Executive Vice President, Global
Color Cosmetics, P&G, where she leads the COVERGIRL and Max Factor
businesses across more than 80 global markets. Mrs. Eggleston Bracey has
over 24 years of experience, including over 15 years in Beauty and
Personal Care, and was responsible for transforming COVERGIRL into the
iconic pop culture brand it is today, as well as expanding P&G Cosmetics
internationally with the modernization of Max Factor. She will
transition from Geneva to New York following the close of the
Sylvie Moreau, President, Coty Professional Beauty – Mrs. Moreau
will be responsible for overseeing Coty’s salon business in hair and
nail care. She is currently Executive Vice President of Wella, the Salon
Division of P&G. Over her 21-year career, Mrs. Moreau has held a variety
of positions in local, regional and international roles, managing many
iconic brands. She has spent the last seven years in P&G’s Salon
Professional division where she was instrumental in the business
turnaround. Mrs. Moreau will remain based in Geneva following the close
of the transaction.
Mario Reis, Chief Global Supply Officer – Mr. Reis will be
responsible for running Coty’s fully integrated, end-to-end supply
chain, covering procurement, manufacturing and warehousing &
distribution, facilitating the acceleration of profitable growth as well
as driving cost leadership at Coty. Prior to joining Coty, Mr. Reis
spent 16 years with Danone, where he held several senior executive
positions in Global Operations. Mr. Reis will remain based in Geneva
following the close of the transaction.
Jules Kaufman, Chief Legal Officer and Secretary – Mr. Kaufman
will continue to oversee Coty’s legal affairs worldwide, including,
among other things, acquisitions and divestitures, governance,
compliance, licenses and patents and regulatory issues. Since joining
Coty in 2008, Mr. Kaufman has helped guide Coty’s growth through
multiple acquisitions, and through its evolution from a privately held
into a publicly listed company. He previously served as Vice President
and Division General Counsel for Colgate-Palmolive Company’s
Europe/South Pacific Division. Mr. Kaufman will transition from New York
to London following the close of the transaction.
Ralph Macchio, Chief Scientific Officer – Mr. Macchio will be
responsible for all Scientific and Global Regulatory & Consumer Affairs
at Coty. Mr. Macchio has been with Coty since 1992 and has held various
positions of increasing R&D responsibility at the company. Mr. Macchio
will remain based in Morris Plains, New Jersey following the close of
Sébastien Froidefond, Chief Human Resources Officer – Mr.
Froidefond will manage all corporate human resources activities,
including talent management, organizational and people development,
performance management, compensation and benefits and human resources
information systems. Prior to joining Coty, Mr. Froidefond was Human
Resources Vice President for the Global Consumer Healthcare division of
Sanofi. Mr. Froidefond will transition from Paris to London following
the close of the transaction.
Jean Mortier will retire from Coty and will be succeeded, effective
immediately, by Edgar Huber as President Global Markets. Jean has agreed
to stay with Coty through June 2016 as a Special Advisor to the CEO.
Jean will be responsible for helping to transition Edgar Huber into his
new role, transitioning licensor relationships to Camillo Pane and Edgar
Huber, aiding in the transfer of P&G licenses to Coty, assisting with
the anti-trust review process and helping to restructure our joint
venture and distributor relationships. Coty would like to recognize and
thank Jean for his many contributions to the Coty business and company
and wish him well in his future endeavors.
As previously disclosed, the merger with P&G’s Specialty Beauty Business
is expected to close in the second half of calendar year 2016, subject
to regulatory clearances, works council consultations, and other
Forward Looking Statements
Certain statements in this press release are forward-looking statements.
These forward-looking statements reflect Coty’s current views with
respect to the completion of the merger with the P&G Beauty Business.
These forward-looking statements are generally identified by words or
phrases, such as “anticipate,” “expect,” “should,” “would,” “could,”
“intend,” “plan,” “project,” “seek,” “believe,” “will,” “opportunity,”
“potential,” and similar words or phrases. Actual results may differ
materially from the results predicted due to risks and uncertainties
including inaccuracies in our assumptions in evaluating the transaction,
difficulties in integrating the P&G Specialty Beauty Business into Coty
and other difficulties in achieving the expected benefits of the
transaction. All statements in this communication, other than those
relating to historical information or current conditions, are
forward-looking statements. We intend these forward-looking statements
to be covered by the safe harbor provisions for forward-looking
statements in the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are subject to a number of risks and
uncertainties, many of which are beyond the control of Coty, which could
cause actual results to differ materially from such statements.
Risks and uncertainties relating to the proposed transaction with P&G
include, but are not limited to: uncertainties as to the timing of the
transaction; the risk that regulatory or other approvals required for
the transaction are not obtained or are obtained subject to conditions
that are not anticipated, including certain licensor consents;
competitive responses to the transaction; litigation relating to the
transaction; uncertainty of the expected financial performance of the
combined company following completion of the proposed transaction; the
ability of Coty to achieve the cost-savings and synergies contemplated
by the proposed transaction within the expected time frame; the ability
of Coty to promptly and effectively integrate the P&G Specialty Beauty
Business and Coty and their personnel; the effects of the business
combination of Coty and the P&G Specialty Beauty Business, including the
combined company’s future financial condition, operating results,
strategy and plans; and disruption from the proposed transaction making
it more difficult to maintain relationships with customers, employees or
The foregoing review of important factors should not be construed as
exhaustive and should be read in conjunction with the other cautionary
statements that are included elsewhere. More information about potential
risks and uncertainties that could affect Coty’s business and financial
results is included under “Risk Factors” and “Management’s Discussion
and Analysis of Financial Condition and Results of Operations” in Coty’s
Annual Report on Form 10-K for the fiscal year ended June 30, 2015, and
other periodic reports Coty has filed and may file with the Securities
and Exchange Commission from time to time. Any forward-looking
statements made in this communication are qualified in their entirety by
these cautionary statements, and there can be no assurance that the
actual results or developments anticipated by us will be realized or,
even if substantially realized, that they will have the expected
consequences to, or effects on, us or our business or operations. Except
to the extent required by applicable law, Coty undertakes no obligation
to update publicly or revise any forward-looking statement, whether as a
result of new information, future developments or otherwise.
About Coty Inc.
Coty is a leading global beauty company with net revenues of $4.4
billion for the fiscal year ended June 30, 2015. Founded in Paris in
1904, Coty is a pure play beauty company with a portfolio of well-known
fragrances, color cosmetics and skin & body care products sold in over
130 countries and territories. Coty’s product offerings include such
power brands as adidas, Calvin Klein, Chloé, DAVIDOFF,
Marc Jacobs, OPI, philosophy, Playboy,
Rimmel and Sally Hansen.
For additional information about Coty Inc., please visit www.coty.com.
Kevin Monaco, 212-389-6815
Jessica Baltera, 212-389-7584