Kalina, one of Russia's largest cosmetics producers, is to sell its 100 percent stake in Germany's cosmetics manufacturer Dr. Scheller Cosmetics AG to Coty Inc., Kalina said on Friday without disclosing the sum of the deal.
Under the deal, Kalina will preserve the rights to Dr. Scheller and Phyto Solution skin care brands.
"Since acquiring Dr. Scheller Cosmetics AG, we have done a good job of restructuring the company, turning it into a pure sales and marketing company, and increasing its profitability," the company quoted Kalina CEO Alexander Petrov as saying in a statement.
"Now implementing our exit strategy from the color cosmetics market and concentrating on the skin care market which is more profitable for us, we have entered into the transaction. During all those years we gained a very valuable and important expertise of working on a mature European market...At the same time we maintain Dr. Scheller Das Naturkonzept product line and intend to further develop it as an international brand".
Coty Inc. CEO Bernd Beetz said: "the acquisition of Dr. Scheller Cosmetics is a natural extension of our strategy to offer a well balanced portfolio of brands, representing some of the leading consumer products in Germany".
RMG analysts said in a statement they expected the deal to be conducted in the first quarter of 2011 and to be profitable for Dr.Scheller.
MOSCOW, November 12 (RIA Novosti)