Coty has announced that it has entered into a partnership with the Founders of Younique, an online peer-to-peer social selling platform in beauty. Under the proposed agreement, Coty intends to acquire 60% of Younique while the Founders will own the remaining 40%. Younique’s Founder and current CEO, Derek Maxfield, and Chief Visionary Officer, Melanie Huscroft, will continue to lead the business in the new partnership.

Younique was founded in 2012 in the United States by siblings Derek Maxfield and Melanie Huscroft, with a mission to uplift, empower and validate women across the globe. Younique’s make-up and skincare products are sold through its disruptive peer-to-peer e-commerce platform. This platform enables Younique’s community of independent presenters to leverage social media in marketing and distributing Younique’s line of beauty products directly to consumers.

Coty will acquire a 60% stake of Younique for approximately $600 million in cash which will be funded through a combination of cash on hand and available debt facilities with marginal impact on Coty’s leverage ratio. The transaction is subject to customary closing conditions and is expected to close during Coty’s 2017 fiscal third quarter. The transaction is expected to be immediately accretive to Coty’s top-line growth, EBITDA margin and FY17 earnings.

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