Procter & Gamble finalises share exchange ratio for its Specialty Beauty Brands

A final ratio has been set for shareholders of Proctor & Gamble (P&M) to exchange their shares for those of Galleria, which will be owned by New-York-based cosmetic firm Coty in October.

Coty has signed an agreement to acquire 41 beauty brands from P&G for $12.5bn. P&G will shift the assets and liabilities of its Specialty Beauty Brands to Galleria, a fully owned unit of P&G set up to facilitate the split-off deal. Following completion of the deal in October, Galleria will then become a fully owned unit of Coty.

P&G stated that the final exchange ratio for shares of its common stock will be 1:3.9033 shares of Galleria common stock.

Each share of Galleria will then be converted into the right to receive one share of Coty class A common stock upon completion of the merger.

With the completion of the deal, P&G will close the huge brand divestment it stated two years ago. 

P&G expects that with the divestment, it will become smaller and easier to operate.