Image: Rony Santos/Facebook Grupo Boticario
Grupo Boticário, controller of the O Boticário brand, the largest cosmetics franchise in the world, may be in negotiations to purchase the operation of the beauty multinational Coty in Brazil, which brings together the brands Wella, Koleston, Cenura & Bronze, Risque and Paixão , among others.
After the acquisitions of Vult, a make-up brand with youthful positioning and sale on popular channels and the national cosmetics e-commerce giant, Beleza na Web, the group, according to statements by Grupo Boticário CEO Artur Gynbaum to Valor Econômico newspaper , seeks to diversify its operations in the hair care category. But there is also the distribution of Coty in supermarkets, which complements the Group’s multichannel operations.
With a focus on cosmetics, skin, fragrances and hair brands, Coty is the eighth largest manufacturer of personal care products in the country. If the operation is confirmed, Coty’s assets would remain within the Multi B business unit, responsible for distributing products to multi-brand chains, such as pharmacies and perfumeries.
Artur Grynbaum told Valor that Coty has not yet released information on the Brazilian operation, but the proposals will be received by Credit Suisse in March. Coty went on sale in October 2019, along with its professional hair care products division in beauty salons.
As for the financing of the new operation, Grynbaum told the newspaper that the company would either direct its own capital for the operation, or raise funds in the market. “We would have no problem raising funds from banks. We have a good risk rating, ”added the company’s CEO to the newspaper.
The Boticário Group recorded last year growth of 9% in its net revenue, which reached R $ 14.9 billion, while the personal hygiene, perfumery and cosmetics industry grew 5%, according to data from the sector association, Abihpec.