Coty gives update on merger with P&G Beauty Brands
NEW YORK -- Coty says it expects its transaction with P&G’s Fragrance, Color Cosmetics and Hair Color Business to close in October and that it expects to incur $1.2 billion of one-off costs over the next four years related to closing the deal.
“We continue to make strong progress on the P&G transaction which we expect will make Coty a global leader and challenger in the Beauty Industry," said Bart Becht, chairman and interim CEO of Coty. "We now expect the transaction to close in October 2016. We’ve also substantially increased our estimates for cost synergies compared to when we announced the transaction, significantly improving the outlook for Coty’s adjusted operating margin and adjusted earnings per share, excluding amortization.”
On July 9, 2015, Coty announced that it had entered into a definitive agreement to acquire P&G’s beauty brands through a Reverse Morris Trust structure. The transaction will create one of the world’s largest beauty companies, with pro forma combined annual revenues of more than $9 billion based on fiscal 2015 performance, strengthening Coty’s leadership position in the global beauty industry.
Following the transaction with P&G Beauty Brands, Coty is expected to become the global leader in fragrances with market leading positions in color cosmetics and hair coloring & styling.
P&G Beauty Brands includes fragrance brands such as Hugo Boss and Gucci, and the color cosmetics brands COVERGIRL and Max Factor. The transaction also gives Coty an attractive new category in the beauty industry through the addition of P&G’s hair color business, led by Wella and Clairol.
