GLOBAL: Henkel, Revlon, Coty prepare bids for P&G beauty brands | Progresiv
Personal care and cosmetics companies Henkel & Co KGaA AG, Revlon Inc and Coty Inc are preparing bids for parts of Procter & Gamble Co's beauty business, according to sources. 
The three companies are working with investment banks ahead of a first-round bid deadline set for next week, the sources said. A successful sale would allow P&G to focus on more profitable consumer brands such as its Gillette razors, Tide detergent and Pampers disposable diapers.
Henkel is interested in buying P&G's haircare business, which includes the Wella and Clairol brands, the sources said, declining to be named because the matter is private. The haircare business is worth about 7 billion dollars based on annual earnings before interest, tax, depreciation and amortization (EBITDA) of around 500 million dollars, the sources said.
Revlon, the owner of makeup brands such as Almay, is eyeing P&G's cosmetics business, which includes drugstore brands CoverGirl and Max Factor. That business has annual EBITDA of around $350 million, the people said.
Coty, which makes perfume for fashion brands Calvin Klein and Marc Jacobs and owns nail polish brand OPI and Rimmel mascara, is likely interested in P&G's fragrance unit, though it could also look at buying P&G's cosmetics business as well, the sources said.
P&G's fragrance unit includes brands such as Hugo Boss and Gucci and has EBITDA of around 250 million dollars, they said.
It remains unclear whether P&G will try to sell its brands as part of a package, whose value could range from 10 billion dollars to 12 billion dollars, or piecemeal. P&G could also decide to scrap the sale entirely and instead look to spin off the unit, the sources added. (www.reuters.com)
