Coty now has become the third-largest beauty company in the world, behind L’Oréal and Estée Lauder.
Coty's new logo
The $11.4 billion deal was a stock swap between the two companies in which P&G investors were allowed to choose if they wanted to tender all or part of their shares into the new company, called Galleria, that will later convert to shares of Coty stock. In the swap, P&G sold off most of its fragrances, salon, cosmetics, and hair-color businesses, including big-name brands like CoverGirl and Clairol. Coty will also take over eight P&G factories and around 10,000 workers, as well as about $2 billion in debt.
As a result of the merger, Coty now boasts approximately $9bn in revenue and now is number one in fragrances, two in salon hair and three in colour cosmetics.
Coty’s brands will be divided into 3 items:
1. Coty Consumer Beauty:
with brands such as Bourjois, Clairol, Covergirl, Max Factor and Wella.
2. Coty Luxury:
comprising Hugo Boss, Calvin Klein, Alexander McQueen and Davidoff.
3. Coty Professional Beauty:
which includes OPI, Clairol Professional, Wella Professionals and Nioxin.