Private equity firm The Carlyle Group has agreed to sell philosophy, a skincare and cosmetics company, to fragrance-maker Coty.
Financial terms of the transaction were not disclosed. The transaction is subject to customary regulatory approvals and is expected to close in December 2010.
The Carlyle Group managing director Sandra Horbach said that philosophy has achieved great success under Carlyle ownership thanks to the hard work of Ken Stevens, his management team and philosophy’s many devoted associates.
"We recognize and thank philosophy founder Cristina Carlino for creating this unique brand and for her years of dedication to the company. Coty is an outstanding partner for philosophy, and we wish them continued success," Horbach said.
Blackstone Advisory Partners served as financial adviser to Coty in connection with the transaction. Goldman Sachs acted as financial adviser to philosophy.
Gibson, Dunn & Crutcher LLP served as legal adviser to Coty in the transaction. Latham & Watkins LLP served as legal adviser to philosophy.
The acquisition of philosophy is expected to allow Coty to further strengthen and expand its Coty Prestige division, which will manage the philosophy portfolio.
philosophy is a beauty brand focused on skin care, with an important presence in fragrance, bath and body and color cosmetics.
The philosophy product line, which is sold in QVC, Sephora, Ulta, Nordstrom and other premier retailers, is expected to generate sales of more than $200m in 2010.