P&G Continues Brands Sell-Off with Fragrance Sale to Elizabeth Arden
Christina Aguilera perfume divestiture follows asset sales to Coty, Henkel and Warren Buffett’s Berkshire Hathaway
Procter & Gamble Co. (NYSE: PG) has agreed to sell the global license and certain assets of the Christina Aguilera fragrance business to the Elizabeth Arden Inc. (Nasdaq: RDEN) beauty products company. Terms of the transaction were not disclosed, and the deal is expected to close in the third quarter.
Cincinnati-based Procter & Gamble has been divesting, discontinuing and consolidating brands since 2014, with plans to eventually exit 105 brands because of the undo complexity they create.
Celebrity recording artist Christina Aguilera has been selling her perfumes since 2007; she now has seven brands. George Cleary, president of global fragrances at Elizabeth Arden, says the company plans to grow the Aguilera business globally.
New York-based Elizabeth Arden is a beauty products company with a portfolio of brands sold in more than 120 countries, including Elizabeth Arden skincare, color and fragrance products, and a professional skincare line. The portfolio also includes the fragrance brands of Juicy Couture, John Varvatos, Wildfox Couture, Britney Spears, White Diamonds Elizabeth Taylor, Curve, Giorgio Beverly Hills, Ed Hardy, Jennifer Aniston, Lucky Brand, Paul Sebastian, Halston, Geoffrey Beene, Rocawear, Alfred Sung, White Shoulders, Taylor Swift, Nicki Minaj, Mariah Carey and Justin Bieber.
Procter & Gamble’s recent deals have included agreeing in 2015 to sell more than 40 beauty brands to Coty Inc. (NYSE: COTY) for $12.5 billion; the sale of Pert hair care brands to the Henkel consumer goods company in March; and the recently completed sale of the Duracell battery business to Warren Buffett’s Berkshire Hathaway Inc. (NYSE: BRK.A)
Another example of a company shedding non-core businesses has been Newell Rubbermaid (NYSE: NWL), which wants to focus on its writing, baby and parenting product lines. In March, the company agreed to sell its Levolor and Kirsch window covering businesses for $270 million, to Hunter Douglas. Newell Rubbermaid won Mergers & Acquisitions' 2015 M&A Mid-Market Award for Strategic Buyer of the Year.
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