Miss Clairol, Max Factor sold to Coty in $15B deal with P&G

French group Coty has entered into a $12.5bn deal for to acquire 43 of Proctor & Gamble’s hair and beauty brands.

“The merger with Coty, a strategic acquirer, will provide an excellent new home for these businesses and brands”, said P&G CEO AG Lafley in a statement. That includes stock valued at about $13.1 billion and $1.9 billion in debt, but the debt could range between $1.9 billion and $3.9 billion. The consumer products company has been working to slim down and focus on a portfolio of just 65 brands it believes will drive growth.

Coty sells fragrances, cosmetics and skin and body care products under brand names including Calvin Klein, Marc Jacobs, OPI and Sally Hansen.

While the form of the deal has not been finalised, P&G said it expected to break off the operations that will be merged with a Coty subsidiary.

P&G shareholders will own 52% of all outstanding shares on a fully diluted basis, while Coty’s existing shareholders would own 48% percent of the combined company.

Coty Inc. made a $10.7 billion offer for Avon Products Inc.in early 2012 but withdrew the offer after Avon failed to engage in a timely manner.