Coty and Younique announced a mutual decision to terminate their partnership with Coty, selling its controlling stake back to the original founders.
WHO: Younique was founded in 2012 by brother and sister duo Derek Maxfield and Melanie Huscroft. The siblings combined their backgrounds in computer programming and advertising to build what could be the digital evolution of the “Avon Lady.” The brand’s skincare and makeup, based on a science and nature philosophy and priced between $19-$39, are sold through its disruptive peer-to-peer e-commerce platform. This platform enables Younique’s community of independent presenters to leverage social media in marketing and distributing products directly to consumers. Younique describes itself as a mission-first company, committed to uplifting, empowering, and validating women everywhere.
Coty is one of the world’s largest beauty companies with an iconic portfolio of brands across fragrance, color cosmetics, hair color and styling, and skin and body care. Coty is the global leader in fragrance, a strong number two in professional hair color & styling, and number three in color cosmetics. Coty’s products are sold in over 150 countries around the world.
WHY: 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 has recently announced a comprehensive roadmap to improve performance and unlock significant value in its core business.
IN THEIR OWN WORDS: Derek Maxfield, CEO, Younique declared, “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. 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.”
Pierre Laubies, CEO, Coty, said, “We wish Derek and the teams all the best for Younique’s next chapter. 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.”
- Coty will sell its controlling stake to Younique’s original founders upon regulatory clearance, as soon as practicable. The conditions of the exit will not be made public; however, no further adjustment to Coty’s intangible asset base is expected as a result of this transaction.
- In January of 2017 Coty acquired 60% of Younique for approximately $600 million, while the founders kept the remaining 40%. The purchase was valued at $1 billion.
Photo: via Younique