Unilever, Henkel and Colgate-Palmolive, and several mutual funds are in talks over the dispute over Coty‘s beauty business, according to a report published by Reuters. Citing three anonymous sources, Reuters revealed that Coty is expected to auction off its beauty portfolio, which includes Wella, Clairol, GHD and OPI.
Coty, which has a market value of $ 9 billion and belongs to the German conglomerate JAB Holdings, is due to start an auction process in December to find a new owner.
Brands, many of which are acquired from Procter & Gamble, are an attractive prospect for major cosmetics and private equity firms, thanks to their potential – although they have all decreased sales over the past 12 months.
Banks advising potential buyers estimate that the portfolio could reach 10 to 12 times its profit of about $ 600 million, generating a valuation of $ 6 to 7 billion, according to market sources.
Coty’s downward trajectory since the acquisition of P&G’s portfolio is known and documented. To believe the rumors, it was decided to admit defeat and focus on its fragrance portfolio.