Perfumier Coty Inc close to buying nail-polish maker OPI Products for $1 billion

Coty Inc, one of the world's largest fragrance maker, is reportedly close to buying nail-polish maker OPI Products Inc. for about $1 billion, The Wall Street Journal today reported.

The deal comes after New York-based privately owned Coty, which reported sales of $3.6 billion in 2009, had early this month signed a deal to buy Dr. Scheller Cosmetics AG of Germany and skin care and beauty company Philosophy from private- equity firm Carlyle Group. (See: Perfumier Coty Inc to buy Philosophy from Carlyle Group)

Founded in 1981, North Hollywood, California-based OPI manufactures and markets nail care cosmetics. Its products include nail polishes, hand lotions, hand and nail creams, and nail files.

According to London-based market research firm Euromonitor, OPI held around 6 per cent of the US nail-polish market last year.

Coty was founded in Paris in 1904 by François Coty, who is credited with founding the modern fragrance industry. The company holds 48 per cent share of the US fragrance market.

Coty Inc. has a portfolio of notable brands and delivers its innovative products to consumers in 90 markets worldwide.

The Coty brand portfolio is distributed in prestige and ultra-prestige stores and includes Calvin Klein, Davidoff, Jennifer Lopez, Sarah Jessica Parker, Adidas, Beyoncé Knowles, Celine Dion, David and Victoria Beckham, Esprit, Pierre Cardin, Playboy, Shania Twain, Stetson, and Tonino Lamborghini among others.

The WSJ, citing sources said that the deal could be announced as early as today. But the negotiations could still fall apart, they add.