Sept. 10 (Bloomberg) -- Coty Inc., the perfume maker that filed for a U.S. initial public offering in June, is delaying the sale until at least next year, according to three people familiar with the process.
Coty, which had planned to complete the IPO this year, is pushing the offering back partly to give new Chief Executive Officer Michele Scannavini time to adjust to the role, said the people, who asked not to be named because the matter is private. Scannavini took over Aug. 1, replacing Bernd Beetz.
The fragrance company, whose products include scents by Beyonce Knowles and Heidi Klum, had filed to raise as much as $700 million in the offering. Coty has sought to increase revenue by entering new regions and expanding distribution of its brands in emerging markets.
Kevin Janeczko, a spokesman for New York-based Coty, didn’t respond to a telephone message seeking comment.
The makeup manufacturer is also holding off on its IPO after public companies in the same business have lost momentum recently, the people said. Estee Lauder Cos., the maker of Mac cosmetics and Clinique skin-care products, finished last week 6.7 percent below its 2012 peak, even as the Standard & Poor’s 500 Index rose on Friday to the highest since January 2008.
Coty filed for the offering after failing to gain control of Avon Products Inc.’s global door-to-door sales network earlier this year. Chairman Bart Becht had attempted the acquisition to find new customers for Coty’s cosmetics and more than double its annual sales from brands including Cerruti and Wolfgang Joop. Avon’s stock has lost 32 percent from its April peak this year through Sept. 7.
Net revenue in fiscal 2012 is projected to be more than $4.5 billion, and cash flow from operations may be more than $550 million, an increase from $417.5 million in the previous year, Coty said in its June 29 filing. In the 12 months ended March 31, the company had operating income of $304 million.
Bank of America Corp., JPMorgan Chase & Co. and Morgan Stanley are managing the sale. Coty, which holds perfume licenses for brands including Calvin Klein and Marc Jacobs, was founded in 1904 in Paris by Corsican-born Francois Coty.
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