Coty Inc. said Aug. 28 that it is terminating its partnership with beauty and cosmetics company Younique LLC, in which it has a 60% stake, to "focus on their respective strengths."
New York-based Coty said it will sell its entire shareholding in the company to Younique's original founders "as soon as practicable," adding that the conditions of the exit will not be made public.
The divestment follows Coty's announcement of a turnaround plan to improve its consumer beauty division. The company had previously said it expects to incur $600 million in restructuring costs from fiscal 2020 to fiscal 2023 apart from $160 million related to previous programs.
"We now need to focus on our turnaround plan and the significant opportunities which lie in our luxury, consumer and professional businesses," Coty CEO Pierre Laubies said.
Coty does not expect the sale to result in any further adjustment to its intangible asset base. The transaction is subject to regulatory approval.
