Coty said in an official statement that it was expecting the transaction to be completed in Austria directly after receipt of all the necessary regulatory approvals.
Coty CEO Bernd Beetz said, "The purchase of these prestige fragrances strengthens Coty's leadership position in the global marketplace. It is an excellent strategic move for Coty and one that is fully in line with our strategy. Coty is now the world's largest fragrance company and we are in a strong position to achieve our long-term goal of being among the top five beauty companies in the world."
Coty announced that it had entered the agreement with Unilever at the end of May, in a deal that is estimated to be valued at $800 million (€665m). The move gives Coty access to key brands such as Calvin Klein and Chloe, increasing the prominence of the company on the international beauty market.
Coty already owns key international for fragrance brands that include Joop, Celine Dion, Adidas, Jennifer Lopez and Esprit. Most recently the company signed up England football captain David Beckham and his pop star wife Victoria to promote future perfume brands.
Michele Scannavini, President, Lancaster Group Worldwide said, "The addition of these brands is a strong complement to Lancaster Group's prestige portfolio of celebrity, designer and lifestyle fragrances. We are truly excited about this acquisition and we are looking forward to developing these brands, which give us a new platform to further build our prestige business around the world."
The deal is expected to bring an additional $600 million in yearly revenue for Coty and will also allow it to extend it geographic reach out of the North American market and into the Asian and European markets.
In addition to the perfume licensing agreement, the deal will also extend Coty's manufacturing capabilities in the US with the acquisition of Unilever's Mt. Olive, New Jersey, facility, together with a distribution centre in Lille, Northern France.
With the global fragrance industry still characterized by high levels of fragmentation, the move will also put the company in a good position to make further moves to consolidate the industry as well as winning itself greater purchasing power by capitalizing on existing synergies.
Likewise the move is seen as a significant step for Unilever to build on its core capabilities, which centre on food and personal care. In recent years the company has been trimming back its portfolio diversity in an effort to become more competitive, primarily against Proctor and Gamble in the personal care sector, and Kraft in the food sector.