NEW YORK — Coty Inc. plans to acquire a 60% interest in Founders of Younique, an online peer-to-peer (P2P) social selling platform in beauty care, for $600 million in cash.
Coty said Tuesday that Younique will operate as a separate business within the Coty Consumer Beauty division and continue to be led by current chief executive officer Derek Maxfield, chief visionary officer Melanie Huscroft and management team, in partnership with Coty.
Younique was founded in 2012 by siblings Maxfield and Huscroft, who will own a 40% stake in the business.
Younique’s P2P platform enables its community of independent presenters to leverage social media in marketing and distributing Younique’s makeup and skin care products directly to consumers.
Coty said partnership will combine Younique’s high-growth e-commerce offering and social selling direct-to-consumer business model with Coty’s beauty product research and development, manufacturing and supply chain capabilities.
Coty noted that Younique’s highly scalable technology platform is built for mobile-first e-commerce and seamless global expansion, with about 200,000 active presenters and more than 4.1 million consumers in 10 countries, including the United States, United Kingdom, Canada, Australia, New Zealand, Germany, Mexico, France, Spain and Hong Kong. Younique generated an estimated $400 million in net revenue in 2016.
“Derek and Melanie are tremendous entrepreneurs who have built one of the most engaging and fastest-growing e-commerce companies in beauty. Alongside the rest of Younique’s team and in partnership with their presenters, they have been able to impact the lives of millions of consumers across a number of countries, with a mission to uplift and empower women,” stated Coty CEO Camillo Pane. “We look forward to working with them to continue supporting this mission and building Younique into a leading global e-commerce beauty company.”
The transaction is expected to close during Coty’s fiscal 2017 third quarter, pending customary closing conditions.
“We are thrilled to have Coty as a partner and expect that together we will be able to take Younique to new heights,” commented Maxfield. “Coty and Younique share a passion for beauty, an entrepreneurial spirit, as well as complementary missions. I am very excited about this partnership and everything it can bring to Younique’s employees, presenters and loyal consumers across the world.”