P&G Deal Would More Than Double Coty Business and U.S. Ad Spending
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Coty appears to be the winning bidder for beauty brands being divested by Procter & Gamble Co. in the biggest remaining piece of the company’s plan to shed 100 slower-growing or non-strategic brands, though no deal has been finalized.
The New York Post reported that Coty has won bidding with an offer valued at up to $12 billion for three chunks of the beauty business P&G is divesting, though the deal may not close for weeks as the two sides arrange for a tax-free spin-merge transaction similar to what P&G has used to divest such brands as Folgers.
The deal would represent around half the roughly $11.5 billion in sales P&G Chief Financial Officer Jon Moeller said in February the company plans to shed as part of its brand culling. Given that P&G already has announced plans to divest or spin off brands with around $6 billion in sales, it could largely complete the process. Spokespeople for Coty and P&G declined to comment. Bloomberg reported Henkel had dropped out of the bidding, and a Henkel spokesperson declined to comment.
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