Coty Confirms Transfer Of Ten P&G Fragrance Licenses - Quick Facts

(RTTNews) - Perfume maker Coty Inc. (COTY) confirmed that ten Procter & Gamble Co. (PG) fragrance licenses will transfer to Coty upon regulatory approval and completion of the merger transaction.

The ten fragrance licenses include Hugo Boss, Gucci, Lacoste, Bruno Banani, Escada, Mexx, James Bond, Gabriela Sabatini, Stella McCartney, and Alexander McQueen. The licensors of the Dolce & Gabbana and Christina Aguilera Perfumes licenses did not provide their consent within the specified timetable and therefore, it was agreed that these brands will not transfer upon completion of the merger.

Accordingly, Coty noted that as per the transaction agreement, the assumed debt from the P&G Specialty Beauty Business will be adjusted downward to reflect the fact that ten out of the twelve available licenses, subject to regulatory approval, are transferred rather than all twelve.

This downward debt adjustment will be based using specific and contractually pre-agreed formulas. Coty will disclose the outcome of these formulas, which will be known at a later date.

Coty continues to expect the transaction to close in the second half of calendar 2016.