07 Dec Coty Inc. and Del Laboratories, Inc. announce acquisition of Del Laboratories, Inc. by Coty Inc.
Excerpt of press release by Del Labs
Coty Inc., a leading global beauty and the world’s largest fragrance company, and Del Laboratories, Inc., a leading developer, manufacturer, and marketer of cosmetics and over the counter pharmaceuticals, today announced that Coty has entered into an agreement to acquire DLI Holding Corp. and its subsidiaries. DLI Holding Corp. is the parent company of Del Laboratories, Inc.
Under the terms of the agreement, all operations of DLI Holding Corp. will be merged with and into Coty.
The acquisition further enhances Coty Beauty’s flourishing fragrance, color and skincare portfolio, through the addition of leading brands, such as Sally Hansen, N.Y.C. New York Color, La Cross, Orajel and Dermarest. Furthermore, the acquisition also brings Coty closer to its quest of becoming a $5 billion beauty company.
“We view the acquisition of DLI Holding Corp. as a natural extension of our strategy to offer a unique portfolio of brands that produce some of the strongest consumer franchises around the world,” said Bernd Beetz, CEO, Coty Inc. “Del’s established, well-regarded portfolio of quality products mesh well with our core offerings, and their strong presence in North America complements Coty Beauty and Coty’s international strength.”
Charles J. Hinkaty, President and CEO of Del Laboratories, Inc. said, “As our exceptional management team has guided Del through a sustained period of organic growth, cost reduction, supply chain enhancement, and international expansion, we sought an ownership structure that would enable us to continue to build upon the organization’s many growth opportunities.”
Financial terms of the transaction were not disclosed. Coty, which employs more than 8,500 people worldwide, ended the 2007 fiscal year with net sales of $3.3 billion. Upon closing, Del Laboratories, Inc. and DLI Holding Corp., which is principally owned by investment funds associated with Kelso & Company LP, will become wholly-owned subsidiaries of Coty.
The consummation of the merger is subject to customary closing conditions, including Hart-Scott-Rodino clearance. The merger is expected to close by December 31, 2007.
Atlas Advisors acted as exclusive financial advisor to both Del Labs and Kelso & Co. in connection with this transaction.
Atlas Advisors is the marketing name for Atlas Advisors, LLC and Atlas Strategic Advisors, LLC. Atlas Strategic Advisors, LLC provides financial advisory services in connection with mergers, acquisitions and other similar transactions. Atlas Strategic Advisors, LLC is a wholly owned subsidiary of Atlas Advisors, LLC and a member of the FINRA.
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