Coty Inc. and Del Laboratories, Inc.—a developer, manufacturer and marketer of cosmetics and over the counter pharmaceuticals—announced that Coty has entered into an agreement to acquire DLI Holding Corp., the parent company of Del Laboratories, and its subsidiaries. Under the terms of the agreement, all operations of DLI Holding Corp. will be merged with and into Coty.
According to a joint press release, the acquisition further enhances Coty Beauty’s fragrance, color and skin care portfolio through the addition of brands such as Sally Hansen, N.Y.C. New York Color, La Cross, Orajel and Dermarest. Furthermore, the acquisition also brings Coty closer to its quest of becoming a $5 billion beauty company.
“We view the acquisition of DLI Holding Corp. as a natural extension of our strategy to offer a unique portfolio of brands that produce some of the strongest consumer franchises around the world,” said Bernd Beetz, CEO, Coty Inc. “Del’s established, well-regarded portfolio of quality products mesh well with our core offerings, and their strong presence in North America complements Coty Beauty and Coty’s international strength.”
Financial terms of the transaction were not disclosed. Coty, which employs more than 8,500 people worldwide, ended the 2007 fiscal year with net sales of $3.3 billion. Upon closing, Del Laboratories, Inc. and DLI Holding Corp., which is principally owned by investment funds associated with Kelso & Company LP, will become wholly-owned subsidiaries of Coty.
The consummation of the merger is subject to customary closing conditions, including Hart-Scott-Rodino clearance. The merger is expected to close by December 31, 2007.