Coty completes acquisition of 60% stake in Younique for $600m

Coty has completed its previously announced acquisition of 60% stake in US-based Younique in a deal valued at $600m.

Under the new partnership, online peer-to-peer social selling platform Younique’s founders will continue to own the remaining 40% share. Following the acquisition, Younique will operate as a separate business within Coty’s consumer beauty division and continue to be led by its existing chief executive officer (CEO) Derek Maxfield.

Coty's CEO Camillo Pane said: “We are pleased to complete this transaction and partner with Younique to build a leading global e-commerce beauty company.

“We welcome Younique’s employees, presenters, and customers to the Coty family.”

As part of the partnership, Younique’s e-commerce platform and social selling direct-to-consumer business model will be combined with Coty’s beauty product research and development (R&D) and innovation know-how, as well as its manufacturing and supply chain capabilities.

Together, the companies propose to increase product offerings and geographical expansion of Younique.

Coty funded the acquisition through a combination of cash on hand and available debt facilities. The transaction is expected to be immediately accretive to the company's top-line growth, earnings before interest, tax, depreciation, and amortisation (EBITDA) margin, as well as fiscal year 2017 earnings.