Coty sell off Healing Garden and Calgon brands to Ascendia

by Grant Osborne, 18 January 2007

Ascendia Brands announced today that it has entered into an agreement to acquire the Healing Garden and Calgon brands from Coty Inc for $125 million. Ascendia anticipates that the acquisition will almost double annual revenues, to approximately $200 million.

Calgon and the Healing Garden are the number one and number two brands respectively in the specialty bath sector based on annual sales and the acquisition will strengthen Ascendia’s leadership position in the overall bath category. Ascendia’s existing Lander and Lander Essentials brands hold the number one position in the basic bath segment and its Mr. Bubble and Lander Kids brands are the leading product lines in the children’s bath segment.

"The acquisition of the healing garden and Calgon will enable us to build on our strategy of expanding our premium value brand offerings and will solidify our position as a leader in the bath and specialty bath categories,” said Joseph A. Falsetti, Chairman and Chief Executive Officer of Ascendia. “We expect this acquisition will create attractive strategic and financial synergies as we continue to grow our business. We are also very excited to have Prentice Capital’s continued financial support which we believe is a validation of the Company's business model and the steps that we have taken over the past three years.”

Bernd Beetz, Coty Inc.'s Chief Executive Officer said: "While we respect these brands and their contribution to our success, Coty constantly reviews its portfolio mix, and the strategic fit of its brands, emphasizing global versus local brands, especially in the fragrances and cosmetics businesses. Hence, Coty will continue to acquire and selectively divest brands in accordance with our overall business strategy. We expect that the focus Ascendia will bring to these brands will provide the best opportunity for these brands to flourish in the marketplace.”