Coty, one of the world's largest manufacturers and distributors of fragrances, and a leading player in the cosmetics and beauty care categories, announced Friday that it has signed a contract to acquire the fragrances licenses of Kenneth Cole and Marc Jacobs, two leading American fashion designers. The American Designer Fragrances division of LVMH currently holds the licenses.
While exact details of the transaction have not been disclosed, it has been revealed that the Lancaster Group, the prestige division of Coty, will manage the Kenneth Cole and Marc Jacobs licenses.
Bernd Beetz, CEO of Coty, said of the deal:"We are pleased to become partners with two of the most exciting names in the fashion industry. The team at Lancaster Group is looking forward to working with Kenneth and Marc to create new fragrances that will appeal to their existing clientele and beyond. The licenses provide us with strong growth opportunities for our 'American Luxury Brand Unit' within Lancaster Group."
Michele Scannavini, president of Lancaster Group, added: "We see this acquisition as a strong strategic complement to our brand portfolio, with immediate opportunity for the US, where Kenneth Cole and Marc Jacobs enjoy already a leading position among the new generation of fashion designers. We are also excited by the international opportunity longer term, following the widespread appeal of the two designers outside the US."
Kenneth Cole Productions is a designer, marketer, wholesaler and retailer of branded apparel and accessories "for the fashion-conscious professional". Kenneth Cole Productions currently owns and operates 80 retail stores across the country with worldwide distribution in Europe, Asia and Latin America. Currently, there are 17 licensees that cover 73 dual gender and multi-brand product categories.
Marc Jacobs is a designer whose label is associated with high quality products and includes clothing, leather goods and accessories.
Both the Kenneth Cole and Marc Jacobs fragrance businesses enjoy healthy market share in fine specialty and department stores and have begun to achieve global success, particularly in London and Asia, said Coty in a statement.
Coty is a privately held company headquartered in New York and in 2002 had annual sales of USD 1.5 billion (€1.3bn).