Procter & Gamble has sold 43 of its beauty brands to Coty in an effort to streamline its range of products. The deal includes German luxury hair brand Wella, which rival Henkel had also had an eye on.
The deal is part of Procter & Gamble's efforts to shed around 90 brands from its portfolio of products, which include the Tide and Crest brands in the US as well as international household names such as Gillette razors, Pampers diapers and Always female hygiene products.
New York-based beauty giant Coty said it would buy 43 of P&G's brands for $12.5 billion (11.3 billion euros), among them German salon hair care brand Wella, which German rival Henkel had also set its sights on. But Henkel lost out as it only wanted to acquire the one brand.
Coty, founded by a French perfumer in 1904, will take over the Hugo Boss, Dolce & Gabbana and Gucci fragrance brands as well as US makeup bellwether Max Factor, whose founder not only coined the expression "makeup" but also sold the first commercially available range of foundation, eye shadows and lipsticks in the early 20th century.
Under the deal, P&G shareholders will be paid in Coty shares, raising their stake in Coty to 52 percent. Coty is based in New York but currently majority-controlled by Germany's billionaire Reimann family. The deal with P&G will see its holding reduced to 33 percent.
The Reimann family is one of Germany's richest, having made their fortune in the chemicals sector. The Reimanns were involved in setting up chemicals firm Benckiser in 1851. The company merged with the UK's Reckitt in 1999, leaving the Reimann family with a 15.4-percent stake in Reckitt Benckiser.
ng/cjc (Reuters, AFP, AP)