P&G Signs Merger Deal with Coty Inc.
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 strongly anchored in their beauty heritage, Coty and Wella are a perfect fit. We are both driven by a passion for beauty, creative freedom and the entrepreneurial spirit that was embodied by our founders. We are honored to join the Coty family and are excited about the possibilities this represents for Wella’s mission of elevating hairdressers and the hairdressing industry,” said Sylvie Moreau, global executive vice-president of Wella.
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.
“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.
“Over the past years, Wella has been going from strength to strength, and we have great plans to continue to delight our salons. We will continue to build on our portfolio with several exciting product and service innovations, supported by our world-class sales and education team.”