Rumors have been swirling that Coty, one of the world’s largest beauty companies, is looking to offload major parts of its business—including both its consumer and prestige brands. But in today’s crowded, competitive beauty market, finding buyers might not be so easy.
Fragrance Brands Are Coty’s Crown Jewels
Coty’s biggest strengths lie in its prestige fragrance division. The company holds long-term licenses for iconic brands like Gucci, Chloé, Hugo Boss, and Calvin Klein. These fragrance lines are widely known, well-distributed, and continue to drive significant revenue.
Fragrance specialists like Interparfums could show interest, especially after their success with brands like Lacoste and DKNY. Spanish beauty giant Puig may also be in the mix—they’ve recently focused on acquiring brands outright, adding names like Byredo and Charlotte Tilbury to their portfolio.
Other potential bidders could include fashion licensing groups such as PVH Corp, Tapestry, or Capri, which might see an opportunity to expand into beauty with well-established fragrance brands.
Even parent companies like Kering and LVMH could try to bring these beauty licenses back in-house, especially since both are aggressively building their beauty arms.
Mass Market Brands Face Bigger Challenges
Coty’s mass-market brands like CoverGirl, Rimmel, and Sally Hansen still have strong name recognition, but they’ve been losing ground to faster, digital-first competitors like E.l.f. Beauty and Kiko Milano.
Drugstore beauty isn’t what it used to be—TikTok trends and online shopping have made it harder for traditional brands to maintain growth. While Coty’s mass brands remain top sellers in certain categories, they may not appeal to many strategic buyers.
Private equity, however, could be interested. Firms looking for turnaround opportunities might see value in these brands, especially internationally. This wouldn’t be a first for Coty—they previously sold off Wella and other professional lines to private equity.
Brazilian Brands Could Attract Local Buyers
Coty also owns a handful of personal care brands in Brazil, including Bozzano, Monange, Paixão, and Risque. These could attract buyers with strong Latin American roots. One potential candidate? Natura & Co., the Brazilian powerhouse behind Aesop and Avon, which has deep expertise in the region.
