In an effort to strengthen its business in the United Arab Emirates, Coty Inc. (NYSE:COTY) announced today that it has formed Coty Distribution Emirates, a joint venture with Chalhoub Group and Jashanmal, two UAE-based luxury goods distributors. The financial terms of the deal were not disclosed. Coty, a fragrance, cosmetics, and body care company based in New York City, IPO'd in June.
The company's press release noted this move "was developed in connection with Coty's long standing partnership with the Chalhoub Group, and will allow Coty to expand its go-to market capabilities in the UAE and provide consumers in the region with even greater access to Coty's brand portfolio." Coty's portfolio of beauty products includes popular brands like adidas, Calvin Klein, Marc Jacobs, and others.
For the year ending June 30, 2013, Coty's net revenues from the EMEA (Europe, the Middle East, and Africa) region stood at $2.2 billion, or 47% of its total.
"The United Arab Emirates has enjoyed steady growth over the past decade and is a key emerging market for Coty and the beauty industry," said Coty's CEO Michele Scannavini. "Both Chalhoub and Jashanmal have proven to be exceptional partners to Coty in the Middle East and through our new joint venture, we look forward to further growing our business in this important market."
"We are very pleased to extend our long term relationship with Coty, a partnership which has benefited both of our businesses greatly," said Patrick Chalhoub, CEO of Chalhoub Group.
Fool contributor Patrick Morris has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.