Coty Inc., a leading global beauty company and philosophy, inc., a premier skin care and cosmetics company, have announced that Coty has agreed to acquire philosophy from The Carlyle Group, a global alternative asset manager.

The acquisition of philosophy will allow Coty to further diversify and expand its Coty Prestige division, which will manage the philosophy portfolio. philosophy is a beauty brand focused on skin care, with an important presence in bath and body. The philosophy product line, which is sold in QVC, Sephora, Ulta, Nordstrom and other retailers, is expected to generate sales of more than $200 million in 2010 and consistently earns top beauty industry awards.

“philosophy is one of the beauty industry’s most prestigious brands and a fantastic addition to the Coty family,” says Bernd Beetz, CEO, Coty Inc. “This acquisition will allow Coty to strengthen its presence in the skin care category, which is one of our key strategic objectives.”

“philosophy is a perfect fit with Coty. We have a common focus on innovation, passion for brand development and entrepreneurial culture, and highly complementary brands,” said Michele Scannavini, president, Coty Prestige. “We believe the brand still has significant growth potential in the U.S. and tremendous opportunities in the international markets.”

“philosophy’s success is driven by providing women with products that deliver results and inspiration. We thrive on innovation and are extremely excited to join Coty, a company that shares our passion for delighting consumers with superior products. We look forward to significant growth as part of the Coty global portfolio of brands,” adds Ken Stevens, CEO, philosophy, inc. He added, “I am grateful for the wise counsel and confident support that Sandra Horbach and the Carlyle team always provided to me in the running of this business.”

Financial terms of the transaction were not disclosed. The transaction is subject to customary regulatory approvals and is expected to close in December 2010.