Jim’s Thoughts on the Aquisition of OPI by Coty

Having grown up in the Professional Beauty Industry, I like to share my thoughts on things that are of interest to me and I hope to you too. If you want to “hear” more, let me know and I’ll post thoughts from time to time as they flash through my mind.

Now, lets get to my thoughts on the acquisition of OPI by Coty. First, let me extend my strongest congratulations to George, Suzi, Miriam and the very able senior management team they have assembled over the years. George in particular has worked long and hard hours to build OPI into the power house it is and has always been a true gentleman to myself and Linda over the years. I couldn’t be happier for them.
In 1995, Creative Nail Design (now Cnd) was sold to Revlon. I managed the process from our side and subsequent to the sale was the primary contact for Creative to Revlon, so I witnessed firsthand all of the changes that were made after the sale. Based on those experiences, I’m going to share some insights of the changes that will take place and then I’ll get into some predictions. Here is what I can factually say will change once the ownership legally changes hands to Coty:
· There will be a new decision maker(s) as it applies to the strategic direction of the company. On the day of closing, the existing Board of Directors will resign and the Coty senior management will take their place. In the press release Renato Semerari, the president of the Coty Beauty is quoted, so he will be the new “Chairman of Board” of OPI.
· It is interesting to note that OPI will be a part of the Coty Beauty Group and not the Coty Prestige group. Quoting the press release: The Coty Beauty brand portfolio is more widely distributed and includes Playboy, Sally Hansen and Stetson. Time will tell how widely distributed OPI will become.
· The price paid for OPI was not disclosed, but is rumored to be a very big number. Large multi-national organizations (Coty has sales of approximately 4.0 Billion) make acquisitions for one purpose: to make an acceptable return on investment. The higher the price paid, the higher the return needed to justify the investment. More on this in my predictions.

That’s it for part one…next week my predictions on how this will play out….

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About jimsnailblog

I am passionate about business, especially the Professional Beauty Industry and the Wine business.
This entry was posted in Professional Nail Business. Bookmark the permalink.

One Response to Jim’s Thoughts on the Aquisition of OPI by Coty

  1. Pingback: Speculation mounts over potential OPI sale - Salon Geek

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