The Haney Group Comments advising investors on the upcoming fragrance and cosmetics manufacturer Coty IPO.
June 14, 2013 - The Haney Group a boutique equity research and management firm based in Hong Kong founded by a diverse private wealth consortium of financial professionals, with a combined knowledge of the stock markets, tax legislation, legal compliance and market analysis priding themselves in giving the very best service to their institutional investors, high net worth individuals and private investors today announced in a statement to clients a buy recommendation of Coty Inc. a perfume and cosmetics manufacture.
Corsican-born Francois Coty founded Coty Inc. in 1904 in Paris, France. The company currently privately held by the estate of Joh. A. Benckiser and private-equity firm Berkshire Partners LLC, making headlines last year bidding to take control of Avon a global door-to-door sales network, however undeterred by this lack of undertaking the company bounced back by generating more than double its annual sales taking on new lead brands and moving into emerging markets.
“The Coty IPO looks to be an interesting proposition, after working on similar projects there is movement for good return, here we have fragrance and cosmetic giant with powerful endorsed names that will be in the same leagues as Estee Lauder a $26.3 billion dollar corporation and Avon estimated at $10.1 billion dollars. Coty’s $4.61 billion dollars in sales in the last fiscal year was generated mostly from fragrances, 31 percent from cosmetics and 16 percent from skin and body care,” announced Richard Chambers, Director of Private Equity with The Haney Group.
At the midpoint of Coty’s price range, the company’s common stock would be valued at $6.72 billion dollars generating 11 times earnings putting the company within reach of the door-to-door cosmetic sales company Avon and the maker of Mac cosmetics and Clinique skin-care products Estee Lauder, with brands including Marc Jacobs, Calvin Klein, Chloe, Rimmel London and many famous celebrities Coty now sits in the number two position for fragrances.
“The Haney Group is currently in talks to acquire an undisclosed sum of Coty Inc. shares with JPMorgan for an institutional client, this is a great opportunity for our private investors to seize what could be a very lucrative position. With a strong portfolio of well recognized beauty brands across three key segments of the beauty industry and a global leader of fragrances and one of the fastest growing color cosmetics company’s shows strength in this company,” added Richard Chambers, Director of Private Equity with The Haney Group.