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Unilever and Henkel fight over Coty brands

Unilever and Henkel fight over Coty brands
Shutterstock.com

Several large companies are interested in taking over the beauty and hair care brands from American group Coty. Among them are Colgate-Palmolive, Henkel, Unilever and various investment companies.

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Debt

The American cosmetics group is crippled with a huge debt, and wants to sell some of its brands to alleviate that pressure. The entire 'professional beauty' segment, which mainly consists of hair care products (Wella being the best-known brand) and nail polish (OPI), would be sold. Analysts estimate its value at seven billion dollars (six billion euros). Coty hopes to close the sale?by the middle of next year, Reuters writes.

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The professional beauty segment, which mainly sells to beauty salons, accounts for just over a fifth of Coty's turnover. In the last four quarters, however, sales are going down, and Coty decided to reduce its dependence on the professional segment.

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