Coty acquires its OPI distributor to strengthen brand

Fragrance and cosmetics provider Coty has entered into an agreement to acquire Lena White Ltd, which is the distributor of its OPI branded nail care products in the UK.

US-based Coty has been trying to expand beyond its mainstay fragrance business, by expanding into the cosmetics and skin care arena, as well as increasing its footprint overseas.

Lena White has represented Coty as its distributor in the UK for over 30 years, serving to ensure the supply of its OPI-branded products in both professional and retail businesses throughout the country.

UK is a major market for the OPI brand

The UK is currently the second largest market for the OPI brand worldwide, and the company is aiming to build on its already strong footprint through the acquisition of the distribution business.

Coty says that the acquisition will serve to accelerate the development of the brand’s distribution in both retail and professional channels by leveraging the company’s existing management expertise.

"This acquisition is an important step in strengthening OPI's position in Europe ," said Michele Scannavini, CEO of Coty.

"The OPI strategy remains focused on the salon professional and prestige channels, and we expect to accelerate its growth in the international markets by leveraging our investments in both areas."

OPI is an established world-leading brand in the nail care category, established in the US in 1981 and now available in more than 100 countries.

Nail care sales hits results for last quarter

However, falling sales in both the company’s nail care and fragrance category, were recently blamed for sliding revenues in its most recent first quarter, ending September 2013.

Net revenues for the period were down by 2.6% on a like-for-like basis to $1.18bn, which represented a drop of 2.9% on a reported basis.

Reported net income was also down, falling by 8% to $93.6m compared to the corresponding period last year, while the adjusted net income was also down by 8%.