We don’t know if this means you’ll be seeing more Philosophy products on QVC or not — if that were even possible — but the Phoenix-based skincare company is being sold to Coty.
Philosophy’s owner, the private equity firm The Carlyle Group, may have fetched In the neighborhood of $1 billion for it, Bloomberg News reported Tuesday.
“The acquisition of philosophy will allow Coty to further diversify and expand its Coty Prestige division, which will manage the Philosophy portfolio,” Coty said in its press release.
“Philosophy is a beauty brand focused on skin care, with an important presence in bath and body. Founded in 1996, Philosophy has created a strong emotional connection with its consumer, thanks to the unique combination of brand approachability and product performance.”
The Philosophy product line, which is sold in QVC, Sephora, Ulta, Nordstrom and other premier retailers, is expected to generate sales of more than $200 million in 2010.
Coty’s big Kahuna also chimed in with his hype.
“Philosophy is one of the beauty industry’s most prestigious brands and a fantastic addition to the Coty family,” Coty CEO Bernd Beetz said in a prepared statement. “This acquisition will allow Coty to strengthen its presence in the skincare category, which is one of our key strategic objectives. Philosophy is a perfect fit with Coty. We have a common focus on innovation, passion for brand development.”
And another Coty bigwig got in the release.
“Philosophy is a perfect fit with Coty. We have a common focus on innovation, passion for brand development and entrepreneurial culture, and highly complementary brands,” said Michele Scannavini, president of Coty Prestige. “We believe the brand still has significant growth potential in the U.S. and tremendous opportunities in the international markets.”
Philosophy CEO Ken Stevens is thrilled with the deal.
“Philosophy’s success is driven by providing women with products that deliver results and inspiration,” he said. “We thrive on innovation and are extremely excited to join Coty, a company that shares our passion for delighting consumers with superior products. We look forward to significant growth as part of the Coty global portfolio of brands. I am grateful for the wise counsel and confident support that Sandra Horbach and the Carlyle team always provided to me in the running of this business.”
Financial terms of the transaction were not disclosed. The transaction is subject to customary regulatory approvals and is expected to close in December.
Blackstone Advisory Partners served as financial advisor to Coty in connection with the transaction. Goldman Sachs & Co. acted as financial advisor to philosophy. Gibson, Dunn & Crutcher LLP served as legal advisor to Coty in the transaction. Latham & Watkins LLP served as legal advisor to philosophy.
“Philosophy has achieved great success under our ownership thanks to the hard work of Ken Stevens, his management team and philosophy’s many devoted associates,” Sandra Horbach, managing director of The Carlyle Group, said in a canned statement. “We recognize and thank Philosophy founder Cristina Carlino for creating this unique brand and for her years of dedication to the company. Coty is an outstanding partner for Philosophy, and we wish them continued success.”
Here is Philosophy’s boilerplate: “Philosophy is a brand that approaches personal care from a skin care point of view, while celebrating the beauty of the human spirit. Our products, which include hope in a jar, purity made simple, amazing grace, microdelivery peel and miracle worker, are formulated with scientifically-proven ingredients and technologies.”