Coty Inc, the US maker of Calvin Klein and Chloe perfume, will buy Procter & Gamble’s perfume, hair care and make-up businesses for USD12.5 billion in the biggest cosmetics merger in recent history.
Coty would become the No. 1 perfume maker ahead of L’Oreal and No. 3 make-up provider behind its French rival and Estee Lauder. It would run the perfume licenses of Gucci, Hugo Boss and Dolce & Gabbana as well as make-up brands Cover Girl and Max Factor, more than doubling its size with combined sales of more than USD10 billion.
The deal comes as Coty’s sales across categories have either been stagnating or declining for more than two years while P&G has been struggling to expand its beauty business.