Global fragrance and cosmetics company has confirmed the acquisition of a leading Southeast Asian distributor, just days after forming a joint venture with a distributor in Brazil.
The company has acquired StarAsia, which is an established distributor of beauty products in Cambodia, Hong Kong, Indonesia, Malaysia, Singapore, Taiwan and Vietnam – a distribution footprint that includes a number of key markets for the company.
The acquisition has been made from StarAsia’s parent company, and although terms, condition and the cost of the transaction have not been confirmed, Coty stated the deal is due to close in July.
Coty did also confirm that the existing management team for the StarAsia business would be retained once the deal is completed.
Acquisition focuses on mass market
“The acquisition of StarAsia will provide us with an established distribution platform to sell our mass brands in key developing markets in the Southeast Asia region,” said Michele Scannavini, CEO of Coty.
“We look forward to welcoming the StarAsia organization into the Coty family, and I am confident that the talented team there will fit in very well at Coty.”
Last week the company confirmed a joint venture contract with Frajo International, one of the biggest cosmetics distributors in Brazil, claiming that the deal would serve to help expand its presence in the mass and masstige categories.
Emerging markets focus also turns to Brazil
“Brazil is one of the largest markets in the beauty industry,” said Mr. Michele Scannavini, CEO of Coty. “Frajo is the right partner, sharing our passion for beauty. Together, we look forward to introducing new Coty brands into this key market.”
Currently the company has limited go-to-market capabilities in the Brazil market, a point that has served to limit its ambitions for growth in the market.
Coty, which has an annual turnover in excess of over $4 billion, has been looking to expand its global footprint. Last year it made a hostile $10.7bn bid for Avon Products, which was rebuffed.