COTY’S FILING: Ahead of consummating its acquisition of 41 Procter & Gamble beauty brands, Coty Inc. filed an S-4 with the U.S. Securities and Exchange Commission that sheds more light on the business under P&G as a whole than on the brands it’s picking up.
Coty said it will provide more detail — including further information about how the deal has changed now that the Dolce & Gabbana and Christina Aguilera fragrance licenses dropped out — on its May 3 earnings call. Coty agreed in July to acquire 43 brands from P&G for $12.5 billion.
The 41 brands that are making the transition accounted for a 1 percent decline in organic net sales for fiscal 2015 at P&G, and a 2 percent decline in organic net sales for the first half of fiscal 2016. As a group, several brands that were never part of the P&G/Coty transaction — Laura Biagiotti, Puma, Rochas, Giorgio Beverly Hills and Naomi Campbell — accounted for a 1 percent decline in net sales for fiscal 2015 and a 2 percent decline for the first half of fiscal 2016.
The filing breaks down P&G’s beauty business by percentage of net sales reaped for the fiscal year ended June 30. In that time period, the retail hair and cosmetics unit, which includes Clairol Nice ‘n Easy, Cover Girl, Max Factor and other brands, was responsible for 38 percent of net sales. Fine fragrances brought in 36 percent of net sales. The salon professional segment, including Wella Professionals, was responsible for 26 percent.
Coty said it expects synergies, working capital benefits, one-time changes and one-time capital expenditures may be higher than previously announced amounts, and said it will provide an update on those figures on the May 3 call.