TJoy Holdings, headquartered in the Cayman Islands, holds the TJoy and the Pure Plant Extracts skin care brands, among other ranges.
According to Coty, the investment in TJoy will make the company a ‘major player’ in China, as well as allowing it to expand its research and development activities.
In addition, the established distribution channels that TJoy has in the country will be used to expand some of Coty’s existing ranges, including Rimmel and adidas.
For TJoy, the investment from Coty is a ‘win-win’ situation.
“I am very confident that our combined business will enjoy rapid growth through Coty’s global reach and marketing expertise. And together, our brands will continue to achieve great things,” said TJoy Chairman Mr Chuang Wen Yang.
Although no financial details of the transaction were given, Coty said it expected the share purchase deal to close in January 2011.
Coty expands through acquisitions
The deal with TJoy is the latest in a series of acquisitions and investments from the New York-headquartered company, as part of its aim to become a $7bn beauty company by 2015.
Last week the company confirmed its plan to acquire nail care specialist OPI after weeks of speculation in a deal that is rumoured to value OPI at as much as $1bn.
At the time, Coty said the acquisition, which is subject to customary regulatory approvals, would enhance its color cosmetics portfolio via the addition of over 200 colors of OPI Nail Lacquer’s formula.
"We view the acquisition of OPI as complementary to Coty and a natural extension of our strategy to offer a unique portfolio of brands that produce some of the best known consumer products around the world," said Bernd Beetz, CEO of Coty.
Other recent acquisitions have included the philosophy skin care brand, which the company plans to grow in both the US and internationally. The deal significantly expands Coty’s footprint in the skin care sector.
The color cosmetics sector also got a boost with the recent acquisition of Dr Scheller Cosmetics. With the deal, Coty will take on the Dr Scheller brand Manhatten and become the second largest player in the German color cosmetics market.