Coty and Younique announced a mutual decision to terminate their partnership.
Coty Inc. acquired 60 percent of the fast-growing beauty brand in 2017 for approximately $600 million in cash.
According to a statement released from Coty, given the different nature of the companies’ business models and the need for a strong and specific focus to successfully improve fundamentals, Coty and Younique have agreed to part and focus on their respective strengths.
Coty will sell its controlling stake to Younique’s original founders upon regulatory clearance, as soon as practicable, it said. The conditions of the exit will not be made public, however no further adjustment to Coty intangible asset base is expected as a result of this transaction.
“I am grateful for the collaboration and knowledge we have gained from our partnership with Coty,” said Derek Maxfield, CEO, Younique. “Younique is excited to return to our entrepreneurial roots armed with the knowledge and insights gained from the partnership experience. We remain focused on serving our Presenters with innovative products and leading-edge digital selling tools that make Younique the easiest way to start and run a direct sales business.”
“I am grateful for the collaboration and knowledge we have gained from our partnership with Coty. Younique is excited to return to our entrepreneurial roots armed with the knowledge and insights gained from the partnership experience.” – Derek Maxfield, CEO, Younique
“We wish Derek and the teams all the best for Younique’s next chapter,” said Pierre Laubies, CEO of Coty. “Our presence in Younique for the past few years has been an accelerator of our digital strategy, which has today become one of Coty’s strengths. We now need to focus on our turnaround plan and the significant opportunities which lie in our Luxury, Consumer and Professional businesses.”