QVC’s Ubiquitous Vendor Philosophy Sold To Coty For Reported $1 Billion: That’s A Lot Of Hope In A Jar

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.”

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14 Responses to “QVC’s Ubiquitous Vendor Philosophy Sold To Coty For Reported $1 Billion: That’s A Lot Of Hope In A Jar”

  1. Joanie-B Says:

    I hope that Coty finds someone else to rep Philosophy on QVC, someone who is less of a droopy downer than Carlino. That woman may actually be an “energy vampire”.

  2. kaye holder Says:

    love phlisophy products please do not take off of qvc.

  3. Blog focus on Business, Marketing, Entrepreneur, Small Business and Insurance Says:

    Blog focus on Business, Marketing, Entrepreneur, Small Business and Insurance…

    […]QVC’s Ubiquitous Vendor Philosophy Sold To Coty For Reported $1 Billion: That’s A Lot Of Hope In A Jar « Homeshoppingista's Blog By Linda Moss[…]…

  4. Kelly Says:

    I guess that explains why their fragrances have gone down hill – i.e., lack of staying power or worse yet – a horrible smell like that of bug spray!!

  5. Donna Says:

    I agree with Kelly. I to have notice a change in the fragrances. My favorite for years no longer has the staying power it did . I WILL BE MOVING ON. Another good thing down the tubes.

  6. Faye Mooney Says:

    Pure grace is a fragrrance I dearly LOVED…every one would say you SMELL SO GOOD!! Not anymore the formula has changed. Please e-mail and tell me you have gone back to the orginal formular—PLEASE PLEASE PRETTY PLEASE!!!!!!

  7. Ida Caroccio Says:

    I can’t believe that you would consider keep philosophy. I bought amazing grace for years, everyone would comment of how fresh I smelled. Not now, the product has been so watered down. You should refund all your customers the money they spent.

  8. Marki Says:

    I agree Amazing Grace has changed but instead of watered down, I think it’s stronger! I cannot stand to smell a scent on myself after the first 10 minutes or so because it gives me a headache. Amazing Grace used to work perfectly! I could smell it for awhile then it would fade for MY NOSE but OTHER PEOPLE would say I smelled wonderful all day long and ask me what I was wearing. Once in awhile I would get a little whiff of myself and it was wonderful. Now when I put it on, and I’m talking the body emulsion, I reek all day and I can’t stand myself. And the scent changes to something not quite AG. At least on me. I’d pay big money to get my hands on some perfumed body emulsion made before the sale to Coty!

  9. Karen Says:

    Was a Huge Amazing/Pure Grace fan, but since turnover to Coty product is not the same…Watered down fragrance not what I loved,use to be so thick you could not get out of bottle, scent would last all day. Not anymore, feel ripped off with largest bottle of product I purchased at high price for what it has become, and am stuck with. Very dissapointed as a consumer, you lost me.

  10. Gerri Almquist Says:

    Have been a “Philisophy Girl” for years when all of a sudden I noticed it didn’t smell the same (even after layering product!) Then I found out that it was sold to “Coty”…WHAT A HUGE MISTAKE!!! They have OBVIOUSLY changed the formula!! (SEE REVIEWS ON QVC as the were one of the first & largest companies to carry this line) My own Dr., Mother, Daughter, and children (Nana too!) USE to love the Fragrances & Skin/Hair Products ALL of who have complained as they noticed the SAME THING!! BRING BACK THE ORIGINAL AMAZING GRACE PRODUCTS!!! These mo longer deserve to be called “Philosophy”!! Did you REALLY THINK you were going to “FOOL” the public??? REALLY?? So disappointed!!

  11. Brenda Says:

    So disappointing–never was a Coty fan–it’s a cheap drugstore brand.

  12. Karen Spektpr Says:

    I was a devoted fan of Amazing Grace. over the past few years, I noticed a change in the fragrance, but thought it was just me. Then I found out about the sale to Coty. The fragrance is terrible. It smells like all the other awful colognes on the market. So disappointed. I was always told how nice I smelled. Now, it has that lingering, old lady smell. I am spreading the word. Don’t waste your hard-earned money.

  13. shadina Says:

    Not good ! Coty is going to start using cheap Ingredients in philosophy products now.

  14. Gayle Shafer Says:

    Coty! What is your real. Amazing Grace now smells like alcohol and Pure Grace has no smell at all! Another really good customer lost. So sad to see a great product do a nose dive.

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