Procter & Gamble is officially merging 43 of its beauty brands with Coty, in a Reverse Morris Trust Transaction. The $12.5 billion transaction includes P&G’s salon professional businesses, retail hair color, cosmetics and fine fragrance businesses, along with select hairstyling brands.
“This represents a significant step forward in the work to focus our portfolio on the 10 categories and 65 brands that best leverage P&G’s core competencies. Coty will provide an excellent new home for the businesses and brands we are merging today, as well as for the talented people who are operating them,” said P&G chairman, president and CEO A.G. Lafley.
This agreement will enhance Coty's beauty portfolio and expand its offering in the salon professional channel, where it has already built a nailcare category presence through the acquisition of OPI in 2010.
“We are delighted and privileged to join forces with the Wella team and its portfolio of iconic salon brands," said Bart Becht, chairman and CEO of Coty. "The salon channel is a large and attractive category at the very top end of beauty, and Wella is a key building block of our growth strategy. With its legacy, unique brand portfolio and highly capable organization, Wella has firmly earned its place as a leading partner for hair salons. We are looking forward to being a part of its continued success.”
Until deal closing, expected in the second half of 2016 and subject to all the necessary regulatory approvals and completion of any required information and consultation processes, Wella will continue to operate as the Salon Professional unit of Procter & Gamble. Separately, certain of the fragrance brands require the consent of the licensor to transfer.
The brands included in the transaction are Alexander McQueen, Balsam Color, Bellady, Blondor, bruno banani, Christina Aguilera, Clairol Professional, Color Charm, Covergirl, Design, Dolce & Gabbana, Escada, Forte, Gabriela Sabatini, Gucci, Hugo Boss, James Bond 007, Koleston, L’image, Lacoste, Londa/Kadus, Max Factor, Mexx, Miss Clairol, Natural Instincts, New Wave, Nice & Easy, Nioxin, Sassoon Professional, Sebastian Professional, Shockwaves, Silvikrin, Soft Color, SP (System Professional), Stella McCartney, VS ProSeries Color, VS Salonist, Wellaflex, Wella Professionals (and its sub-brands), Wella Styling, Wellaton, Wella Trend and Welloxon.
[Image courtesy of Coty]