Beauty giant Coty has launched a strategic review of its consumer beauty division, which could see it sell off brands including Rimmel, Max Factor and Sally Hansen.
The New York company said it is reviewing options for the division as its seeks to focus on its more profitable fragrances operation.
Coty, which is majority-owned by investment firm JAB Holdings, said it will consider “partnerships, divestitures, spin-offs, and other potential strategic actions” for the consumer beauty business.
It said the process is aimed that “maximising long-term value and strengthening the balance sheet”.
The consumer beauty division also includes the US-based CoverGirl brand and a raft of Brazilian brands.
Coty also said on Tuesday that it will restructure its other key operations, in a move which will bring together its mass and high-end perfume divisions.
Sue Nabi, chief executive of Coty, said: “This new structure will also drive renewed momentum and sharper focus for consumer beauty, positioning it to compete more effectively in the evolving beauty landscape.
“We have asked Gordon von Bretten, Coty board member and former chief transformation officer, to lead consumer beauty as president, reporting to me.
“Mr von Bretten will have end-to-end responsibility for delivering the full potential of our strong brands in the mass cosmetics, mass skin, and personal care businesses.
“He will also lead the strategic review and join Coty’s executive committee.”
Mr von Bretten added: “We are taking decisive steps on consumer beauty and I am honoured to lead this next phase of value creation together with Ms Nabi.
“Our agenda is clear: realise the full potential of our market-leading brands by focusing the portfolio, elevating product excellence, and driving productivity with discipline so that performance is visible in growth, margin expansion, and cash generation.”
