P&G accepted Coty's offer of $12.5 billion to merge 43 P&G beauty brands with Coty. The transaction is to include P&G's salon professional, retail hair color, cosmetics and fine fragrance businesses, along with select hair styling brands.
"This represents a significant step forward in the work to focus our portfolio on 10 categories and 65 brands that best leverage P&G's core competencies. [The merger] will provide an excellent new home for these businesses and brands, as well as foor the talented people who are operating them," said P&G chairman, president and CEO AG Lafley.
The transaction structure and cost reductions are expected to fully offset lost earnings post-closing.