Canadian Packaging

P&G’s $12.5 billion deal a haven of beauty

By Canadian Packaging staff   

General Coty Inc. P&G Procter & Gamble Company Reverse Morris Trust

The Procter & Gamble Company agrees to merge 43 of its beauty brands with Coty.

CINCINNATI—The Procter & Gamble Company has announced the signing of a definitive agreement to merge 43 of its beauty brands (“RMT Brands”) with Coty Inc. in a Reverse Morris Trust transaction.

A Reverse Morris Trust is a transaction that combines a divisive reorganization (a spin-off) with an acquisitive reorganization (a merger) to allow a tax-free transfer (in the guise of a merger) of a subsidiary under U.S. law.

The transaction includes P&G’s global salon professional hair care and color, retail hair color, cosmetics and fine fragrance businesses, along with select hair styling brands.

P&G chairman, president and chief executive officer AG Lafley says: “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. We have leading global brand positions in these categories, consumer preferred products and leading brands in the largest markets. These businesses and brands have historically grown faster and have been more profitable than the balance. We expect these 10 categories to grow and create value as we focus the energy and resources of the company exclusively on them.

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“The merger with Coty, a strategic acquirer, will provide an excellent new home for these businesses and brands, as well as for the talented people who are operating them. We look forward to a successful transition and we will work together to maximize value for the shareholders of both companies,” concludes Lafley.

P&G, headquartered in Cincinnati, OH, serves nearly five billion people around the world with its brands. The company has one of the strongest portfolios of brands, including Always, Ambi Pur, Ariel, Bounty, Charmin, Crest, Dawn, Downy, Fairy, Febreze, Gain, Gillette, Head & Shoulders, Lenor, Olay, Oral-B, Pampers, Pantene, SK-II, Tide, Vicks and Whisper.

The P&G community includes operations in approximately 70 countries worldwide. For company information, visit www.pg.com.

Photo: Procter & Gamble headquarters building in Cincinnati. Photo shot by Derek Jensen (Tysto), 2005-August-09 {{cc-by-2.0}}.

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