Henkel & Co. KGaA AG and Coty Inc., both of which have personal care and cosmetics businesses, made binding offers to buy separate parts of Procter & Gamble Co.’s beauty businesses, Reuters reported.
The bids, submitted on Monday, are worth up to a total of US$12 billion, the report said, citing unnamed sources.
P&G is aiming to shed several assets it considers non-core, as its chief executive officer, A.G. Lafley, presses on with his cost-cutting strategy.
Henkel made an offer for P&G’s haircare business, which includes the Wella and Clairol brands and could fetch a valuation of between US$5 billion and US$7 billion, the report said.
While Henkel is considered to be the most likely buyer, private equity firm KKR & Co. LP also submitted a bid for the haircare business.
Coty, which makes perfume for fashion brands Calvin Klein and Marc Jacobs and owns nail polish brand OPI and Rimmel mascara, has submitted bids for P&G’s fragrance unit and its cosmetics business.
Buyout firm Clayton Dubilier & Rice LLC also submitted a bid for P&G’s cosmetics business, which includes drugstore brands CoverGirl and Max Factor and could fetch about US$3 billion in a sale.
Warburg Pincus LLC, another private equity firm, is also interested in P&G’s cosmetics business as well as its fragrance unit, which includes brands like Hugo Boss and Gucci and could fetch around US$2 billion.
P&G has already divested some of its non-core brands.
Last year, the company sold its Duracell battery brand to Warren Buffett’s Berkshire Hathaway Inc. for US$4.7 billion and sold some of its soap brands to Unilever Plc.
– Contact us at [email protected]