Mergers & Acquisitions Coty Inc. announced a definitive agreement 78 Spray August 2015 “I know it’s corny, but I like it!” to acquire Procter & Gamble Co.’s (P&G) 43 fine fragrance, color cosmetics and hair color brands through a tax-free Reverse Morris Trust transaction. The transaction, which values the three businesses at approximately $12.5 billion, includes fine fragrance brands Dolce & Gabbana, Gucci and Hugo Boss, as well as hair care and cosmetics brands Clairol, CoverGirl, Max Factor and Wella. Expected to more than double its revenues, the transaction makes Coty one of the world’s largest beauty companies and the single largest perfume producer in the world, according to Euromonitor International. Plastipak Packaging, Inc. completed its acquisition of plastic aerosol manufacturer La Seda de Barcelona Group’s APPE Packaging division following approval from the European Commission. Plastipak’s winning bid in a March insolvency auction totaled €360 million ($396 million). Colep has become the sole shareholder of Brazilian companies Provider, Total Pack and Colep Provider Aerosol (CPA). After first entering the Latin American personal care and household care products markets in 2010 by acquiring a 51% stake in the three manufacturers, Colep has now purchased the remaining 49% previously held by ZM Participação. Unilever signed an agreement to purchase U.S. skin care company Murad. The brand, founded in 1989, will be incorporated into Unilever’s Prestige division. Terms of the deal were not disclosed. Unilever also acquired skin care brand Dermalogica, which offers in-home and professional skin therapy products. Russian pharmaceutical company Nativa announced a strategic agreement with VARI, a wholly-owned subsidiary of Lindal Group, to cooperate in the innovation and manufacturing of new metered-dose aerosol dispensing solutions for the treatment of respiratory diseases. MeadWestvaco Corp. and Rock-Tenn Co. revealed the name of the new entity formed by their $16 billion merger, originally announced in January. WestRock Co. is expected to begin doing business July 1 under the New York Stock Exchange (NYSE) ticker symbol WRK. L’Oréal reached a license agreement with women’s luxury clothing brand Proenza Schouler to develop perfume products. They will be the first fragrances produced for the New York design label in its 13-year history. Dilesh Mehta and Tony Bajaj, CEOs of Designer Parfums and LUXE Brands, respectively, formed a collaborative venture to acquire the luxury hair care brand Frédéric Fekkai—along with its seven salons throughout the U.S.—from Procter & Gamble, effective June 30. The newly-formed entity will be called Fekkai Brands, LLC. PT Shiseido Professional Indonesia, a joint venture between Shiseido and the Aura Beaute Group, was formed to distribute Shisedo Professional-branded products in Indonesia, the world’s fourth-most-populous country. The new venture, in which Shiseido holds a 65% stake, is part of the company’s VISION 2020 medium-to-longterm strategy formed in 2014. Additionally, Shiseido and Burberry signed an agreement allowing Shiseido to sell the luxury brand’s makeup and fragrance products throughout Japan. Already distributors of Burberry fragrances in Europe through subsidiary Beauté Prestige International, Shiseido will now market the brand’s products in its home territory for the first time. SPRAY Regulatory Issues Continued from p. 8. Unfortunately, industry was not successful in preserving the use of HFC-134a in some products, most notably: • Air horns for marine use. • Tire inflators. • Silly String products. Even though several companies made very good arguments to try and preserve the use of HFC-134a in the above products, EPA did not grant a use exemption. Thus, in July or August of 2016, HFC-134a will not be used in those products any more. However, EPA is allowing all products made before the effective date to have an unlimited sell-through. This is good news and means any product made before the effective date can be sold without having to worry about a sell-through date. Industry worked cooperatively with each other and the agency on this rule. Everyone tried to develop the best rule we could. While we did not get everything we asked for, EPA did grant some of our requests. Now, we have to ensure that the work the California Air resources Board (CARB) is doing on the Short Lived Climate Pollutants (SLCP) does not interfere with the SNAP rule. The current essential uses need to be maintained. CARB Survey On July 1, CARB staff conducted a webinar on the 2014 Consumer & Commercial Products Survey. CARB released instructions for using the new Consumer Products Reporting Tool (CPRT). CPRT instructions and webinar slides can be found at http://bit.ly/1Kb0Ymm. The deadline for 2014 data is Nov. 1, 2015 and another webinar is scheduled for Sept. 16. More to come on this! SPRAY
Spray August 2015
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