Coty and Procter & Gamble (P&G) have announced the acquisition by Coty of P&G’s fine fragrance (Hugo Boss, Dolce & Gabbana and Gucci), colour cosmetics (Covergirl and Max Factor), and hair colour businesses (Wella, Clairol) for approximately US$12.5 billion.
This historical transaction will create one of the world’s largest beauty companies, with pro forma combined annual revenues of more than US$10 billion based on fiscal year 2014 performance. In particular, Coty is expected to become the global leader in fragrances and to significantly enhance its position in colour cosmetics. The transaction will also significantly expand Coty’s geographical footprint, providing scale in large beauty markets like Brazil and Japan, while also increasing critical mass in important areas such as in North America, Europe, the Middle East and Asia.
Earlier this year, P&G sold two soap brands to Unilever as well as French fragrance brand Rochas to Interparfums. As for Coty, the group recently acquired Bourjois from Chanel, which consecutively become one of its main shareholders.