The transfer of P&G Specialty Beauty Brands to Coty is now complete, making Coty the third-largest beauty company in the world with approximately $9 billion in revenue. As a combined company, Coty will now also hold the No.1 position in fragrances, and the No.2 and No.3 positions in salon hair and color cosmetics, respectively.
P&G’s Reverse Morris Trust transaction with Coty, was first announced back in 2015, consisting of P&G’s global fine fragrances, salon professional, cosmetics and retail haircolor businesses, along with select hair styling brands.
"The completion of this transaction is a key step in our journey to return P&G results to a balance of strong top-line growth, bottom-line growth and cash generation," said David S. Taylor, P&G chairman, president and CEO. “This effectively completes the major work we undertook two years ago to streamline and strengthen our product portfolio. We are now focused on 10 product categories and about 65 brands where P&G has leading market positions and where product technologies deliver performance differences that matter most to consumers.”
Coty has been organized into three divisions with the goal of enabling faster decision-making, focused investments and better communication with customers and consumers. The divisions are as follows:
- Coty Professional Beauty, focusing on servicing salon owners and professionals in hair and nail care, including Clairol Professional, Nioxin, OPI, Sebastian Professional, System Professional and Wella Professionals
- Coty Consumer Beauty, representing color cosmetics, retail hair coloring and styling products, body care and mass fragrances, and including iconic brands such as Clairol and Wella
- Coty Luxury, focusing on prestige fragrances and its emerging skincare footprint, and including brands such as Marc Jacobs and Gucci
Global consumer goods veteran Camillo Pane, who most recently served as head of global health and personal-care business for Reckitt Benckiser (RB), has been named CEO of Coty, following the merger. “It is my great privilege to take over the reins of leadership at such a transformational moment. Today marks a new chapter in Coty’s rich heritage,” said Pane. “With this merger, we have brought together a powerful portfolio of much-loved beauty brands and some of the world’s most talented people in beauty and consumer goods.”
Taylor added: “I'm pleased with the timely, efficient and effective transition of these businesses. I want to share my personal thanks to all the employees who have transitioned to Coty. They showed amazing dedication during a period of uncertainty—demonstrating time and time again the strong character of P&G people. I thank them for everything they did during the transition and for all their years with P&G and wish them an exciting future with Coty.” Reportedly, 10,000 employees have moved from P&G to Coty, following the merger.
[Image courtesy of P&G and Coty]