Coty Inc is buying 43 beauty brands from Procter & Gamble Co (P&G), including Miss Clairol, Covergirl and Max Factor.
P&G, maker of Tide laundry soap, Crest toothpaste and a multitude of other products, on Thursday said that it puts the deal’s value at about US$15 billion. That includes stock valued at about US$13.1 billion and US$1.9 billion in debt, but the debt could range between US$1.9 billion and US$3.9 billion.
The sale is a part of a long-running effort at P&G to shed some of its dozens of brands and focus on those where it is strongest. Last year, P&G made a deal to sell the Duracell battery brand to Warren Buffett’s Berkshire Hathaway Inc.
The plan is to pare off about 100 brands, leaving about 65 in the P&G stable.
The Coty deal includes P&G’s global professional salon hair care and color, retail hair color, cosmetics and fine fragrance businesses and certain hair styling brands. Other brands included in the transaction are Sebastian Professional, Sassoon Professional, Natural Instincts and Nice & Easy.
Coty sells fragrances, cosmetics and skin and body care products under brand names including Calvin Klein, Marc Jacobs, OPI and Sally Hansen. The New York company said that the transaction would boost its product offerings and expand its global reach, particularly in markets like Brazil and Japan.
The final details of the deal structure have not been worked out yet, but P&G wants it structured as a Reverse Morris Trust, which would have the beauty business separated from P&G and merged with a Coty subsidiary.
Cincinnati-based P&G expects a one-time gain from the deal of about US$5 billion to US$7 billion. Coty anticipates about US$550 million in cost savings on an annual basis over the next three years and approximately US$500 million in one-time costs.
The transaction is expected to close in the second half of next year, at which point Coty anticipates raising its annual dividend to US$0.50 per share.
Stephen Garrett, a 27-year-old graduate student, always thought he would study in China, but first the country’s restrictive COVID-19 policies made it nearly impossible and now he has other concerns. The cost is one deterrent, but Garrett is more worried about restrictions on academic freedom and the personal risk of being stranded in China. He is not alone. Only about 700 American students are studying at Chinese universities, down from a peak of nearly 25,000 a decade ago, while there are nearly 300,000 Chinese students at US schools. Some young Americans are discouraged from investing their time in China by what they see
MAJOR DROP: CEO Tim Cook, who is visiting Hanoi, pledged the firm was committed to Vietnam after its smartphone shipments declined 9.6% annually in the first quarter Apple Inc yesterday said it would increase spending on suppliers in Vietnam, a key production hub, as CEO Tim Cook arrived in the country for a two-day visit. The iPhone maker announced the news in a statement on its Web site, but gave no details of how much it would spend or where the money would go. Cook is expected to meet programmers, content creators and students during his visit, online newspaper VnExpress reported. The visit comes as US President Joe Biden’s administration seeks to ramp up Vietnam’s role in the global tech supply chain to reduce the US’ dependence on China. Images on
New apartments in Taiwan’s major cities are getting smaller, while old apartments are increasingly occupied by older people, many of whom live alone, government data showed. The phenomenon has to do with sharpening unaffordable property prices and an aging population, property brokers said. Apartments with one bedroom that are two years old or older have gained a noticeable presence in the nation’s six special municipalities as well as Hsinchu county and city in the past five years, Evertrust Rehouse Co (永慶房產集團) found, citing data from the government’s real-price transaction platform. In Taipei, apartments with one bedroom accounted for 19 percent of deals last
US CONSCULTANT: The US Department of Commerce’s Ursula Burns is a rarely seen US government consultant to be put forward to sit on the board, nominated as an independent director Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday nominated 10 candidates for its new board of directors, including Ursula Burns from the US Department of Commerce. It is rare that TSMC has nominated a US government consultant to sit on its board. Burns was nominated as one of seven independent directors. She is vice chair of the department’s Advisory Council on Supply Chain Competitiveness. Burns is to stand for election at TSMC’s annual shareholders’ meeting on June 4 along with the rest of the candidates. TSMC chairman Mark Liu (劉德音) was not on the list after in December last