CINCINNATI - Procter & Gamble Co. is modifying its deal with Coty Inc. to exclude perfume brands by Dolce & Gabbana and Christina Aguilera.
Coty announced Tuesday that licensors for the brands “did not provide their consent” for the deal, so P&G will sell 41 – instead of 43 beauty brands -- to the New York-based buyer.
Coty still plans to acquire 10 perfume brands from P&G, including Hugo Boss, Gucci, Lacoste and celebrity brands by Gabriela Sabatini and Stella McCartney. Coty agreed to buy 43 P&G beauty brands last July in a deal valued at $15 billion, including the assumption of $2.9 billion in P&G debt.
Coty said it will reduce the amount of debt to reflect the exclusion of two perfume brands, but wouldn’t reveal the amount. Both companies said they hope to complete the transaction in the second half of this year.
What it means for the two perfume brands is not yet clear.
“We’ll work with the respective license holders to determine next steps,” said P&G spokesman Paul Fox. “But we have clearly indicated our plan to exit the fragrance business.”