COTY confirmed on Jan. 12 that ten Procter & Gamble fragrance licenses will transfer to COTY upon regulatory approval and completion of the merger transaction, including 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 in accordance with the transaction agreement and in the interest of staying on track with the transaction, it was agreed that these brands will not transfer upon completion of the merger.
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. The outcome of these formulas will be known at a later date, which COTY will disclose once determined.
COTY continues to anticipate a closure of the transaction in the second half of calendar 2016.