Coty Projects Higher Costs For P&G Deal, Orphan Brand Challenges
This article was originally published in The Rose Sheet
Executive Summary
Costs associated with integrating 41 P&G beauty brands are estimated to reach $1.2bn over the next four years, more than doubling Coty's projections when the mega-deal was announced last year, and investments will be needed to galvanize the currently under-supported orphan assets. However, Coty is projecting $780m in synergies and room for further growth as a $9bn beauty force to be reckoned with.
You may also be interested in...
Coty Mum On Combined Business Prospects As P&G Merger Nears Close
Rising beauty giant Coty projects a return to growth for its standalone business in the second half of fiscal 2017, but has yet to provide guidance for the combined entity that will emerge from its merger with P&G Specialty Beauty, expected to close in October. New CEO Camillo Pane will take the wheel at that time, and mass fragrance brands may be up for grabs as Coty works to streamline its glutted portfolio.
P&G Beauty Dragging With Olay Quiet, Coty Brand Takeover Ongoing
Olay sales slipped on an organic basis during the firm's third quarter, despite efforts over the past year to kickstart the brand, and strong Pantene and Head & Shoulders performances in hair care couldn't offset underperformers. Efforts to close the firm's $12.5bn merger deal with Coty likely continue to weigh on the P&G's beauty performance, with sales down 8% to $2.7bn for the period.
Women’s Voices For The Earth Will Keep After CIR, Salon Worker Safety In 2024
Women’s Voices for the Earth continues to call attention to cosmetic ingredients’ potential health impacts on users including salon workers, while pushing the Cosmetic Ingredient Review to consider a wider variety of safety information in its assessment work.