Earlier today, the Procter & Gamble Company announced the signing of a definitive agreement to merge 43 of its beauty brands with Coty Inc. in a Reverse Morris Trust transaction. Among others, the transaction includes P&G’s Salon Professional business.
P&G Chairman, President and Chief Executive Officer A.G. Lafley commented: “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.”
This agreement will enhance Coty’s beauty portfolio and expand its offering in the salon professional channel, where it has already built a nail care 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.”
“As two iconic houses anchored in strong beauty heritage, Coty and Wella are a perfect fit. We are both driven by passion for beauty, creative freedom and entrepreneurial spirit that was once embodied by our founders,” said Sylvie Moreau, Global Executive VP of Wella. “We are honored to join the Coty family and excited about the possibilities this represents for Wella’s mission of elevating hairdressers and the hairdressing industry. Over the past years, Wella has been going from strength to strength and we have great plans to continue delighting our salon partners and the industry, on our 135th anniversary and in the future.”
“We’re looking forward to our future with Coty, and we remain firmly focused on supporting our salon partners consistently and with the continued excellence that they have come to expect from us,” commented Sal Mauceri, Wella North America. “We will continue to build on our portfolio with several exciting product and service innovations, supported by our world-class sales and education team.”
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.
About COTY Inc.
COTY is a leading beauty company with net revenues of $4.6 billion for the fiscal year ended June 30, 2014. Founded in Paris in 1904, COTY is a pure play beauty company with a portfolio of well-known fragrances, color cosmetics and skin & body care products sold in over 130 countries and territories. COTY’s product offerings include such global brands as adidas, Calvin Klein, Chloé, DAVIDOFF, Marc Jacobs, OPI, philosophy, Playboy, Rimmel and Sally Hansen. For additional information about Coty Inc., please visit www.coty.com
About Wella, Salon Professional unit of Procter & Gamble
Wella has been at the heart of hairdressing since its inception in 1880, passionately shaping the salon professional industry through ground-breaking innovation, creative inspiration, expert education and close salon partnerships. Wella’s portfolio of leading and trustedbrands includes Wella Professionals, Sebastian Professional, Sassoon Professional, Clairol Professional, Nioxin and System Professional. Products and services are distributed in more than 100 countries across the world, making hair color, care and styling dreams real every day for millions of stylists and their clients worldwide. For additional information about Wella, please visit www.wella.com