Unilever offloads its prestige fragrance business for $800 million
Unilever Cosmetics International will be sold to Coty Inc. as Unilever focuses on its core activities.
20/05/05 Unilever is set to sell its global prestige fragrance business, Unilever Cosmetics International (UCI), to Coty Inc. as it focuses on its core activities.
Unilever will receive a consideration of $800 million in cash at the closing, with the opportunity for further deferred payments contingent upon future sales.
The business includes the perfume licenses for Calvin Klein, Cerruti, Vera Wang, Chloe and Lagerfeld, as well as a manufacturing and distribution center in Mt. Olive, New Jersey, and a distribution center in Lille, France. UCI employees will transfer to Coty with the business.
Sales for the global prestige fragrance business for 2004 were in excess of $600 million (EUR490m). "This is an excellent strategic move for Unilever and one that is fully in line with our strategy to focus on our core categories. We are delighted that UCI's strengths will complement those of Coty and will enable the brands to grow within a leading cosmetics and fragrance business," said Patrick Cescau, CEO of Unilever.
The transaction is expected to be completed in the course of the coming months, subject to the necessary regulatory approvals and normal consultative procedures.
