the 07/21/2008

Perfume maker Coty seeks acquisitions to expand cosmetics business ...

 FRANKFURT (Thomson Financial) - Perfume maker Coty, which makesCalvin Klein and Davidoff scents, is seeking acquisition to expandits cosmetics business, chief executive Bernd Beetz told FinancialTimes Deutschland in an interview.

'Acquisitions are very important for our growth plans,' Beetz said.

The New York-based family-owned company aims to boost annual salesto $5 billion by 2010 from $3.3 billion in 2007.

To help reach that goal, the company in 2005 bought consumer goodsgiant Unilever's fragrance arm for a minimum cash sum of $800million.

Some 82 percent of Coty's sales last year were generated in theperfume division, while make-up accounted for 15 percent and skincare products generated the remaining 3 percent of revenue.

Coty, which also makes Lancaster cosmetics and Rimmel make-up, isseen as one of several parties interested in buying Frenchcosmetics company Clarins, along with L'Oreal, Estee Lauder andProcter & Gamble, FT Deutschland said.

Clarins has since decided to delist the company from the stockexchange on increasing pressure from market rumours that thecompany may be acquired.

maria.sheahan@thomsonreuters.com

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