Dec. 6 (Bloomberg) -- Coty Inc., the seller of perfumes by Sarah Jessica Parker and Vera Wang, will acquire a majority stake in Chinese skin-care company TJoy Holdings Ltd. as it seeks to expand in the world’s most-populous nation.
The companies entered into a share-purchase agreement, according to a statement yesterday, which didn’t disclose the value of the deal. The Wall Street Journal on Dec. 3 reported Coty would announce a purchase of TJoy for about $400 million in cash and stock.
TJoy is the fourth acquisition closely-held Coty has announced in the past month, as it seeks to bolster its cosmetics business. Coty, which said sales rose 3 percent to 3.6 billion in its 2010 fiscal year, is increasing competition with L’Oreal SA in the Chinese market.
“The TJoy investment positions Coty as a major player in China, solidifying our position as a global beauty leader,” Coty’s Chief Executive Officer Bernd Beetz said in yesterday’s statement.
New York-based Coty agreed to buy nail-care company OPI Products Inc., according to a Nov. 29 statement. The perfume maker owned by Joh A. Benckiser SE is also buying beauty company Philosophy from private equity firm Carlyle Group and agreed to purchase German cosmetics firm Dr. Scheller Cosmetics AG. Financial terms for the acquisitions weren’t disclosed.
Founded in 1904 in Paris by Corsican-born Francois Coty, the company helped develop perfume into a mass product, with 36 million consumers two decades later, according to the company’s website.
Coty hired Baccarat glassmakers and other artists and artisans to design packaging and established ownership of flower fields, factories and printing plants. The company opened subsidiaries in New York and London in 1912 and now employs 8,500 people.
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