Burberry has announced a new partnership with international beauty giant Coty as it aims to boost the growth of its own-brand beauty division.
The new partnership will see Burberry receive a cash payment of £130 million for the long-term exclusive global license of its beauty arm as well as a further £40 million in relation the transferring of assets.
The lump sum roughly equals Burberry Beauty‘s wholesale beauty revenue for the last financial year, hitting £171 million.
“We are pleased to complete this transaction and move forward with our strategic partnership,” Coty‘s chief executive Camillo Pane said.
“Coty‘s world-class ability in developing and bringing to market beauty brands will help drive a new phase of development and growth for Burberry Beauty.”
The move comes after Burberry‘s recent investment drive in its beauty arm, relaunching its make-up range and boosting sales of its flagship My Burberry and Mr Burberry fragrances.
Burberry chief executive Marco Gobbetti added: “Following months of hard work to ensure a smooth transition, we are pleased that this strategic partnership, which brings together tremendous beauty experience and expertise, has begun.
“Burberry is incredibly proud of what has been achieved in the last four years and we look forward, with the support of Coty, to further building on these foundations.”