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Coty Inc. is slated to acquire three beauty care businesses from Procter & Gamble Co., according to published reports.
The New York Post reported late Monday that Coty has won an auction to buy P&G’s CoverGirl and Max Factor cosmetics brands, hair care business and fragrance business. P&G’s hair care brands include Wella and Clairol.
The Post, which first released the story, and Reuters both cited unnamed sources saying that the deals — not yet finalized — could have a total value of as much as $12 billion. Reuters had reported last week that Coty and Henkel & Co. made binding offers to purchase P&G beauty businesses.
According to a report by the Cincinnati Enquirer, if the sales of the businesses go through, the annual sales of P&G’s $20 billion beauty business would be pared by over 15%.
Reports had surfaced earlier this year that companies — including Coty, Henkel and Revlon Inc., among others — were readying bids for or contacted about P&G beauty businesses being put on the block.
Coty’s fragrances, color cosmetics, skin care and body care products are sold in more than 130 countries and territories. The company’s brands include adidas, Calvin Klein, Chloé, Davidoff, Marc Jacobs, OPI, philosophy, Playboy, Rimmel and Sally Hansen.
Last summer, P&G unveiled plans to drop as many as 100 brands over the next couple of years to sharpen its focus on its most profitable product lines. The consumer products giant said that under the strategy, which would more than halve its brand count, the company would shed 90 to 100 brands via sales or eliminations over the next two years.
Thus far, P&G has announced plans to sell or discontinue more than 30 brands, including Duracell batteries, Iams pet food, Camay soap and Vicks VapoSteam.
