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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26 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!!

    • Christine Cornfield Says:

      I agree I used to use philosophy for years. Just started again with a purchase of hope in a jar. I put in on and it separated into little clumps that wouldn’t smooth away.i returned it.then I discovered many others are now having problems with their items.its to expensive not to be satisfied.I don’t think I’ll be their customer any longer.

  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.

  15. Angela Says:

    I can’t understand why coty doesn’t listen to its customers but what is even more incredible is that so many people are still purchasing the product despite the negative change. How can they still like it. It has a momentary scent. And it’s not even the pleasant scent that it once had. Crazy!

  16. Kim Burke Says:

    Why did you change the formula to amazing grace, and other scents? Why did you ruin a good thing. Btw, bring back Lemon up, it was my favorite scent growing up.That I would buy! Sad to say until you fix what you broke.I will no longer be buying any philosophy products.

  17. Julia A. Valera Says:

    With all of these negative comments from real invested customers, I cannot believe Coty has cheapen this product and also I cannot believe the previous owner of this product would allow Coty to change the ingredients that obviously has made such an impact to a lot of women. Coty are products that are used by young folks who really have not experienced the value of a good scent that truly makes a person feel like they smell wonderful. I suggest you turn back the clock and go back to the original drawing board and listen to the comments before Philosophy products are no more…just like your other products.

  18. N. Luck Says:

    Saddened by changes in Philosphy fragrances. Took away Baby Grace even though it has a huge following. Amazing Grace has been reformulated and watered down as well! You think Ms. Carlino wears AG,etc. now!? COTY is a CHEAP INSULT!

  19. Harlie Mountain Says:

    I love Falling in Love Body Spritz. Since the sale they have totally watered down the fragrance. Smells like alcohol. Never again for me. Used it for years.

  20. Nancy Says:

    I won’t use any more Philosophy products unless and until they bring back Amazing Grace to its former beautiful scent. I have literally gone into a deep sadness trying to find a new signature scent that made me feel the way Amazing Grace did! I wish Cristina would do something about it, but it’s obviously she won’t/can’t. The “House of Coty” is a joke!

  21. Lisa Says:

    It’s a horrible thing that has happened. I used to LOVE Amazing Grace, now you can’t smell anything. I am not exaggerating. The minute I put it on, the smell is gone. Never again. I’ve tried way too many times in hopes it would get better. If ANYONE knows how to get a bottle of Amazing Grace (pre-Coty), let me know. I will pay what that wonderful smell used to be worth.

  22. Cathy Says:

    What happened to Inner Grace? Loved it.

  23. roy hendricks ,patricia Says:

    i agree with 90% of the comments above,i no longer buy amazing grace,it is not the same,i bought it because it was the only thing i could wear without smothering me and i loved the fragrance but no more ,they have cheapened the smell .i hope they bring it back….

  24. Debra hollenbach Says:

    I am writing to you as a customer of philosophy products for many years. My favorite product is amazing grace perfume. I feel like the customers have been begging this company to produce something that is and has been a quality and loved product. We have all noticed and noticed immediately the change in formula of many products since the selling of the company. If I had a company and my clients were asking for something I would be moving heavan and earth to provide it. Look at the reviews; we are not buying it anymore and if we are we continue to hope that the original amazing grace will be in that bottle when opened. I keep hoping but returned the last 2 bottles. Please have the original reintroduced. Stop the deception and marketing of an inferior product. It smells really bad right now! Please listen to your customers. Are we not the most important piece to your financial future? I for one am willing to pay for this fragrance if it is quality. Please listen to your customers. Otherwise I feel like your company is intentionally trying deceive your customers.

  25. Sherry Darchuk Says:

    Why won’t you put the original formula back into place? The fragrance doesn’t last like it us d too. Are you trying to save money ? I don’t think altering the product will work.

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