JAB extends US$1.75 billion offer to buy majority stake in Coty

JAB Holding Company has extended its US$1.75 billion offer to buy a majority stake in global cosmetics giant Coty until 15 April.

The original offer, through JAB affiliate Cottage Holdco, to buy a 60% holding in US$9 billion turnover Coty, which boasts a powerful global portfolio of brands including Calvin Klein, Burberry, Davidoff , Tiffany & Co, Gucci and many others, had expired on 29 March.

Coty achieved revenues of US$9.4 billion in 2018, led by Chief Executive Officer Pierre Laubies.

Coty has already recommended the US$11.65 a share offer to its shareholders.

The purchaser said the offer is subject to clearing various regulatory hurdles around the world.

Coty said it had agreed terms for the offer with JAB, which were intended to enhance the potential for Coty shareholders through participation in the potential value creation that could result from a new strategic plan. This would lay the ground to receive a premium for their shares in the event of future strategic transactions involving Coty’s common equity.

A special committee of disinterested, independent directors of Coty’s board unanimously determined that accepting the offer was in the shareholders’ best interests.

Owned by the Reimann German billionaire family, JAB Holding Company is a privately held group focused on long-term investments in companies with premium brands, attractive growth and strong cash flow.

Headquartered in Luxembourg, JAB operates offices in Europe, the US and South America. Its holdings include Pret A Manger and Keurig Dr Pepper.

 

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