Coty relocates HQ to London as part of major structural changes
If clearance is given by authorities for Coty to merge the 43 color cosmetic, fine fragrance and hair care brands it aims to acquire from P&G, the deal is expected to be sealed by March of next year, allowing for restructuring that is expected to be implemented during the second half of 2016.
The plan will introduce three new business divisions that will be category focused, while there will also be the creation of a new department called Growth and Digital, that will be focused on the development of new business across the three divisions, with an emphasis on digital marketing strategies.
The three new divisions that will be forming the structure of the company post-merger will be:
- Coty Luxury Division, focused on fragrances and skin care
- Coty Consumer Beauty Division, focused on color cosmetics, retail hair coloring and styling products and body care
- Coty Professional Beauty Division, focused on servicing salon owners and professionals in both hair and nail care
Although further details of the new divisions defining where each brand will be positioned are still to be clarified, the newly acquired P&G portfolio is likely to be mostly spread amongst the consumer beauty and professional beauty divisions.
Yesterday Coty also announced the $1bn acquisition of color cosmetic, skin and hair care brands from Brazilian conglomerate Hypermarcas, which includes brands that are again likely to be spread amongst the consumer beauty and professional beauty divisions.
The new executive structure and team
Each of the new divisions will be led by a president who will be supported by the company’s supply chain, finance, human resources and information services, while all three divisions will be overseen by functional heads and the CEO.
Although the company will continue to be listed on the New York Stock Exchange, the presidents and their executive teams will be headquartered in London, where the company believes it can “more effectively operate as a global leader”.
At the top of the ten person executive hierarchy – which includes eight men and two women, Bart Brecht will continue to maintain his position as CEO, backed up by Patrice de Talhouet as CFO.
“The new Coty will bring together a very experienced and diverse executive team, skilled at managing complex global consumer operations, and driving innovation, creativity and growth, all of which are a prerequisite for future success,” said Brecht in an official press release announcing the restructuring.
“This deeply experienced team combined with the new category-focused and consumer-centric structure, and our portfolio of world-class brands, are all expected to play key roles in making Coty a strong global leader and challenger in Beauty and driving profitable growth and shareholder value over time.”
The new position of chief growth and digital officer goes to Camillo Pane, who has spent 20 years at Reckitt Benckiser, where he most recently served in the position of senior vice president for the consumer health division.
Three new business divisions
For the three new business divisions Edgar Hubert has been appointed to the position of president for Coty Luxury, while Esi Eggleston Bracey will be president of Coty Consumer Beauty and Sylvie Moreau will be president of Coty Professional Beauty.
Edgar Hubert has also been jointly appointed as president of global markets with immediate effect, taking over from Jean Mortimer, who will stay on in the board as a special advisor to the CEO until June 2016, in an effort to support the merger of the P&G brands.
The other executive appointments include Mario Reis as chief global supply officer, Jules Kaufman as chief legal officer and secretary, Ralph Macchio as chief scientific officier and Sébastien Froidebond as chief human resources officer.
