20th May 2005 13:45
Unilever PLC20 May 2005 UNILEVER AGREES TO SELL PRESTIGE FRAGRANCE BUSINESS TO COTY Unilever today announced that it has signed a definitive agreement to sell itsglobal prestige fragrance business, Unilever Cosmetics International (UCI), toCoty Inc., of the United States. Unilever will receive a consideration of $800 million in cash at the closing,with the opportunity for further deferred payments contingent upon future sales. The business includes the perfume licenses for Calvin Klein, Cerruti, Vera Wang,Chloe and Lagerfeld, as well as a manufacturing and distribution center in Mt.Olive, New Jersey, and a distribution center in Lille, France. UCI employeeswill transfer to Coty with the business. Sales for the global prestige fragrance business for 2004 were in excess of $600million (€490m). Patrick Cescau, CEO of Unilever said, "This is an excellent strategic move forUnilever and one that is fully in line with our strategy to focus on our corecategories. We are delighted that UCI's strengths will complement those of Cotyand will enable the brands to grow within a leading cosmetics and fragrancebusiness." "This is truly an exciting day for Coty," said Bernd Beetz, Chief ExecutiveOfficer of Coty Inc. "The acquisition of Unilever Cosmetics International andits leading brands will help to fuel Coty's growth and will further strengthenCoty's position in the beauty industry, making Coty a leader in the fragrancebusiness." "We have enjoyed working with Unilever's current management team to improve andinnovate the Calvin Klein fragrance portfolio," said Mark Weber, President &COO, and incoming CEO, of Phillips-Van Heusen Corporation, the parent of CalvinKlein, Inc. "We have great expectations that the reinvigorated Calvin Kleinfragrance portfolio will continue its strong momentum as part of Coty'sorganization and benefit from their expertise in the fragrance industry." The transaction is expected to be completed in the course of the coming months,subject to the necessary regulatory approvals and normal consultativeprocedures. -o0o- May 20 2005 SAFE HARBOUR STATEMENT: This announcement may contain forward-lookingstatements, including 'forward-looking statements' within the meaning of theUnited States Private Securities Litigation Reform Act of 1995. Words such as'expects', 'anticipates', 'intends' or the negative of these terms and othersimilar expressions of future performance or results and their negatives areintended to identify such forward-looking statements. These forward-lookingstatements are based upon current expectations and assumptions regardinganticipated developments and other factors affecting the Group. They are nothistorical facts, nor are they guarantees of future performance. Because theseforward-looking statements involve risks and uncertainties, there are importantfactors that could cause actual results to differ materially from thoseexpressed or implied by these forward-looking statements, including, amongothers, competitive pricing and activities, consumption levels, costs, theability to maintain and manage key customer relationships and supply chainsources, currency values, interest rates, the ability to integrate acquisitionsand complete planned divestitures, physical risks, environmental risks, theability to manage regulatory, tax and legal matters and resolve pending matterswithin current estimates, legislative, fiscal and regulatory developments,political, economic and social conditions in the geographic markets where theGroup operates and new or changed priorities of the Boards. Further details ofpotential risks and uncertainties affecting the Group are described in theGroup's filings with the London Stock Exchange, Euronext Amsterdam and the USSecurities and Exchange Commission, including the Annual Report & Accounts onForm 20-F. These forward-looking statements speak only as of the date of thisannouncement. Except as required by any applicable law or regulation, the Groupexpressly disclaims any obligation or undertaking to release publicly anyupdates or revisions to any forward-looking statements contained herein toreflect any change in the Group's expectations with regard thereto or any changein events, conditions or circumstances on which any such statement is based. About Unilever Unilever, one of the world's largest consumer products companies, adds vitalityto life by meeting the everyday needs for nutrition, hygiene and personal care.With a portfolio of great brands that make people feel good, look good and getmore out of life, 150 million consumers around the world choose Unileverproducts everyday, including icons such as: Knorr, Hellmann's, Lipton, Dove, Sure, Surf, Cif, Marmite, Pot Noodle. Unilever has around 220,000 employees in approaching 100 countries and generatedannual sales of €42 billion in 2004. For more information about Unilever and itsbrands, please visit www.unilever.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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