Coty and Younique have ended their partnership to focus on developing their individual strengths.
Coty, a US multinational beauty company, and Younique, a US multi-level marketing company that markets beauty products, have parted ways by terminating their partnership formed in 2017. The decision has been taken mutually by the two companies, which have agreed to concentrate on the development of their respective strengths. According to Coty’s recent press release, the company and Younique have called it quits because of differences in the nature of their business models. Another reason that Coty has mentioned in its press release is the need for a specific and strong focus for successfully improving fundamentals.
“For Younique’s next chapter, we wish all the best to Derek and the teams. Our company’s presence in Younique for the past few years has been an accelerator of Coty’s digital strategy, which today has become one of our strengths. Now, we need to focus on our turnaround plan and the significant opportunities lying in our Professional, Consumer, and Luxury businesses,” said CEO of Coty, Pierre Laubies.
Coty to sell controlling stake to Younique’s original founders
“I’m grateful for the collaboration and knowledge that we’ve gained from our company’s partnership with Coty. Our company is excited for returning to its entrepreneurial roots armed with the insights and knowledge gained from the experience of the partnership. We are remaining focused on serving our Presenters with leading-edge digital selling tools and innovative products that make our company the easiest way for starting and running a direct sales business,” said CEO of Younique, Derek Maxfield.
As soon as practically possible, upon regulatory clearance, Coty will be selling its controlling stake to the original founders of Younique. The companies will not publicly announce the conditions of the exit, according to Coty’s recent press release. With that said, this transaction is not expected to cause further adjustment to Coty intangible asset base. Recently, Coty announced a turnaround plan to further optimize its Professional Beauty and Luxury businesses and bring about substantial improvement in its Consumer Beauty business.