California-based salon-professional nail polish brand, OPI, is apparently up for sale, and is believed to be asking upward of $1 billion. Although OPI has denied that it is ‘up for grabs’, leading contenders looking to acquire the brand, include the global French company, Coty, Inc. and Cincinnati-based FMCG major, Procter and Gamble.
Coty, which already controls roughly half of the retail nail market with its Sally Hansen and New York Color brands, is said to be the leading contender to snatch OPI from the hands of its competitors in an auction. If Coty doesn’t bag the deal, the runner-up could be P&G, whom the industry experts consider to be the most logical partner for OPI because of its nail polish position, which is weaker than Coty. According to industry speculation, private equity firms are also vying for OPI.
The reportedly pending OPI deal could be the largest in the history of lacquered nails, trumping Coty’s $800 million purchase of Sally Hansen and New York Color owner Del Laboratories in 2007. It will also far exceed L’Oréal USA’s purchase of Essie Cosmetics, which was thought to be around $100 million.
Posted on: 17.11.2010
Source: www.wwd.com
