Coty Deems Cutex Nail Polish Remover Non-Core, Sells Remaining Rights to Revlon
Revlon Inc. (NYSE: REV) acquired the remaining international rights to the Cutex nail care brand from Coty Inc. (NYSE: COTY) for undisclosed terms. The sale includes the Cutex operations in Australia and in the United Kingdom.
Cutex is known for making nail polish removers. Revlon, located in New York, began acquiring Cutex 1998 when it picked up the brand’s rights in South America, Spain and Africa from Unilever NV (NYSE: UN).
“Coty aims to rationalize its portfolio by focusing on fewer brands to drive a higher growth and better quality business,” says Coty CFO Patrice de Talhou't. “Coty’s sale of these Cutex businesses is another step towards our strategy. The Cutex business was not a focus-brand for Coty.” New York-based Coty is in the process of buying 40-plus beauty brands from Procter & Gamble & Co. (NYSE: PG).
Strategic buyers are reshuffling their businesses by shedding slow-growing brands and making acquisitions in their core divisions in an effort to boost profitability. In Addition to selling the beauty brands to Coty, P&G completed the sale of Duracell batteries to Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRK.A) and agreed to sell the global license and certain assets of the Christina Aguilera fragrance business to the Elizabeth Arden Inc. (Nasdaq: RDEN).
Newell Brands Inc. (NYSE: NWL) has also been revamping through M&A. The company, which won Mergers & Acquisitions' 2015 M&A Mid-Market Award for Strategic Buyer of the Year, agreed to sell the Levolor and Kirsch window covering brands to Hunter Douglas for $270 million. In 2015, Newell paid $600 million for Elmer’s Product’s Inc.