Perfume maker Coty Inc today announced that it will acquire skin care and beauty company Philosophy from private equity firm Carlyle Group to add skin care and cosmetics to its portfolio.

New York and Paris-based Coty is one of the world's largest fragrance and leading global beauty companies with an annual turnover of $3.6 billion and over 8,500 employees worldwide.

Coty was founded in Paris in 1904 by François Coty, who is credited with founding the modern fragrance industry.

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.

Philosophy, whose products are expected to generate revenues of more than $200 million in 2010, is based in Phoenix, Arizona and makes anti-aging moisturisers, one-minute skin peels, perfumes and lipsticks.

The company was founded in 1996 by skin-care entrepreneur Cristina Carlino and was acquired by Carlyle in March 2007.

Although Coty did not reveal the financial terms of the transaction, analysts believe that Washington-based Carlyle sold the company for around $1 billion.

"The acquisition of Philosophy will allow Coty to further diversify and expand its Coty Prestige division, which will manage the Philosophy portfolio," Coty said in the statement.

"We believe the (Philosophy) brand still has significant growth potential in the US and tremendous opportunities in the international markets," the company added.