By Chelsey Dulaney
Procter & Gamble Co. agreed to sell its beauty brands to
Coty Inc. in a deal valued at $12.5 billion.
The transaction includes P&G's global salon professional
hair care and color, retail hair color, cosmetics and fine
fragrance businesses, along with select hair styling brands.
P&G shareholders will own 52% of all outstanding shares on a
fully diluted basis, while Coty's existing shareholders would own
48% percent of the combined company.
P&G said it would prefer to structure deal as a "Reverse
Morris Trust," which is used by big U.S. companies looking to shed
unwanted divisions without paying hefty taxes. The deals combine a
tax-free spinoff with a prearranged merger.
Coty Inc. made a $10.7 billion offer for Avon Products Inc. in
early 2012 but withdrew the offer after Avon failed to engage in a
timely manner. It filed to go public about a year later and started
trading in June 2013.
Coty has been acquisitive in recent years, snapping up
nail-polish company OPI Products and skincare-products brand
Philosophy in 2010 for about $1 billion each, among other
deals.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
Access Investor Kit for Avon Products, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US0543031027
Access Investor Kit for Procter & Gamble Co.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US7427181091
Subscribe to WSJ: http://online.wsj.com?mod=djnwires