LONDON — Iconic British fashion house Burberry has signed a multi-million pound deal with American cosmetics giant Coty which will see Burberry’s beauty business transfer to its new American partner.
Burberry will receive a £130 million cash payment and a further £50 million in stock in return for an exclusive long-term global licencing agreement, which will take effect from October, Coty announced on Monday.
New York-based Coty is one of the biggest cosmetics brands in the world, housing make-up brands including Rimmel and Max Factor. It has an annual turnover of approximately £7.2 billion ($US9 billion).
Burberry Beauty’s revenue — which includes its cosmetics and skincare brands — was £203 million in 2015/2016.
Burberry shares ticked up in early morning trading on Tuesday, and rose 0.75% by 9.45 a.m. BST (4.45 a.m. GMT):
Christopher Bailey, chief executive of Burberry, said: “Working with a global partner of Coty’s scale and expertise will help drive the next phase of Burberry Beauty’s development and position this business for growth.”
More from Business Insider UK:
- Former EU diplomat: It’s ‘deluded’ to think Brexit talks won’t be very tough for Britain
- The British construction sector’s post-Brexit vote revival is coming to an end
- Foreign companies in the UK are sounding the alarm about Brexit’s impact on taxes
- The Labour party is set to lose hundreds of council seats across the UK in May
- What happens when your foot falls asleep