A saleswoman arranges make-up products at the French
Paris - AFP
French company Chanel is in exclusive negotiations to sell its make-up brand Bourjois to Coty in exchange for shares, the US cosmetics house said Tuesday.
Coty, looking to expand in the global colour cosmetics market, has offered Chanel 15 million Class A shares, Coty said in a statement. That would value Bourjois at around $240 million (190 million euros) and give Chanel about a 4.2 percent stake in Coty.
Bourjois' make-up is sold in about 23,000 locations in more than 50 countries around the world.
"We are looking forward to having the Bourjois brand as part of our portfolio of leading beauty products, as well as welcoming Chanel as a Coty shareholder," said Bart Becht, Coty's interim chief executive.
Bourjois has a strong position "in a number of Western European countries where Coty is seeking to bolster its presence," he added.
Chanel's representative, Michael Rena, said the French company saw potential opportunities with Coty for the Bourjois brand, and "we intend to examine the offer in more detail and enter constructive talks with Coty."