Coty Inc. has agreed to acquire a majority stake in TJoy
Holdings Ltd., the fragrance company's latest move toward becoming
a diversified beauty company.
The Wall Street Journal reported Friday the world's largest
fragrance company--operating such brands as Balenciaga, Bottega
Veneta and Marc Jacobs--was nearing a deal to buy the closely held
Chinese seller of men's and women's skin-care products in a
cash-and-stock deal valuing it at about $400 million.
Coty on Monday didn't give terms of the deal, which will give it
access to an array of well-known brands and distribution in the
fast-growing Chinese market. Acquisition of the majority stake,
expected to close in January, is a relatively large deal moneywise
for China, which has proven challenging for many Western companies
to penetrate.
The transaction follows Coty's announcement of three major deals
in November, including a planned purchase of nail-polish maker OPI
Products Inc., said to be valued at near $1 billion.
UBS AG (UBS, UBSN.VX) advised Coty on the TJoy deal.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com
(Dana Cimilluca and Ellen Byron of The Wall Street Journal
contributed to this article.)