The Paris-based perfume company Paris Cosmetics Inc. is planning to move its operations to Germany in the next three months, the company said Tuesday.
The move is part of the company’s broader restructuring efforts that include a $1 billion buyout of its rival Coty and a $3 billion sale of the cosmetics company’s beauty brand, Parfums, to German cosmetics giant Novation.
The company said it plans to relocate its headquarters in San Francisco to Munich by the end of the year.
Parfans head of global brands, Christine Jauch, said the company plans to remain in the U.S. for the foreseeable future.
“We’re doing everything we can to stay here,” she said.
The Paris, California-based company operates in the cosmetics industry, including beauty and fragrance lines, and also makes a range of consumer products including hand sanitizers and shaving soaps.
In a statement, Coty said the deal will “bring a much-needed boost to Coty’s consumer business.”
Novation, based in Germany, will receive a 25% stake in Parfours beauty portfolio and Coty will retain 25% of Coty, it said in a statement.
Paris has been facing pressure from a raft of lawsuits in recent years over its products, including allegations of adulteration, misuse, and violations of the law.
In September, the court ruled in favor of Cotys owners, who claimed the company misbranded products and that the company misled consumers.
The case was brought by the American consumer advocacy group Public Citizen, which argued that Cotys products were more expensive than comparable brands.
In November, Cotys announced it was shutting down its cosmetics business, saying it needed to focus on the business of selling “personal care products” and “other products in a sustainable manner.”
In a blog post, Cotyds CEO Marc D’Anastasio said the decision was “due to the intense pressure on the company to be transparent and truthful.”
“Cotys leadership team has been working very hard for the last four years to develop a more efficient and efficient business,” D’Theo wrote.
“It is in this context that we have decided to make this change.
We want to provide Coty consumers with products and services that are truly free of harmful additives and fragrances.”