Business
P&G to Sell Beauty Business to Coty in $12.5 Billion Deal
This Jan. 23, 2012 file photo shows CoverGirl Lash Blast mascara and applicator in Moreland Hills, Ohio. Beauty products maker Coty is buying 43 beauty brands from Procter & Gamble Co., including Miss Clairol, Covergirl and Max Factor. P&G said Thursday, July 9, 2015 that it puts the dealís value at about $15 billion. (AP Photo/Amy Sancetta, File)
(Reuters) – Coty Inc. has sealed a deal to buy Procter & Gamble Co’s beauty business, which includes brands such as Clairol and Wella, in a $12.5 billion transaction that will make Coty the world leader in perfume and hair care.
Coty’s shares fell 6 percent in early trading after the widely expected deal, while P&G was up 0.6 percent.
In a tax-efficient deal designed as a “Reverse Morris Trust” transaction, P&G will separate 43 of its cosmetics, fragrance and haircare brands and fold them into Coty.
The deal is a game-changer for Coty as it adds popular brands such as Wella and Clairol hair color products and Cover Girl and Max Factor make-up to its portfolio of perfume brands that include Marc Jacobs and Calvin Klein.
