Coty to merge ten P&G’s fragrance licenses with itself

Beauty products manufacturer Coty will merge 10 of Proctor & Gamble’s fragrance licenses with itself after securing regulatory approval.

The transaction includes Hugo Boss, Gucci, Lacoste, Bruno Banani, Escada, Mexx, James Bond, Gabriela Sabatini, Stella McCartney, and Alexander McQueen.

Dolce & Gabbana and Christina Aguilera Perfumes licenses will not be part of the transaction as the brands licensors did not provide their approval within the specified timeline.

Under the deal, P&G Specialty Beauty Business’s assumed debt will undergo downward adjustment to specify that 10 of the 12 available licenses will be transferred instead of all .

The downward debt adjustment will depend on specific and contractually per agreed formulas. The transaction is expected to be closed in the second half of this year.

In July 2015, Coty agreed to merge Procter & Gamble Company’s fine fragrance, color cosmetics, and hair color businesses, P&G Beauty Business, valued at $12.5bn with itself through a tax-free Reverse Morris Trust transaction.

After completion of the transaction, P&G shareholders would get 52% of all outstanding shares on a fully diluted basis, while Coty’s existing shareholders will own 48% stake of the combined entity.