However, the licensors of the Dolce & Gabbana and Christina Aguilera Perfumes didn’t provide their consent within the specified timetable, and in accordance with the transaction agreement it was agreed that those brands won’t transfer upon the finalization of the merger, Coty said.
Coty said that under the transaction agreement, the assumed debt from the P&G Specialty Beauty Business will be adjusted downward to reflect the fact that 10 out of the 12 available licenses, subject to regulatory approval, are transferred rather than all 12.
Under a $12.5 billion transaction announced in July, P&G agreed to merge 43 of its beauty brands with Coty, including P&G’s global salon professional hair care and color, retail hair color, cosmetics, fine fragrances, and select hair styling businesses.
Plans call for P&G to spin off or split off the businesses, which will then merge with a Coty subsidiary. Coty reiterated on Tuesday that the deal is expected to close in the second half of 2016.
Including the P&G beauty businesses, Coty would have overall annual sales of at least $10 billion on a pro forma basis, or more than double its revenue for its most recent fiscal year.
Coty’s current roster of fragrance, color cosmetics, and skin and body care products includes such brands as adidas, Calvin Klein, Chloé, Davidoff, Marc Jacobs, OPI, philosophy, Playboy, Rimmel and Sally Hansen.