11.15.10
Coty Inc. is close to a deal to buy OPI Products Inc. for as much as $1 billion, according to a Bloomberg report.
The two companies are in exclusive talks and may reach an agreement as soon as this week, said sources, who asked not to be identified because the matter is private. OPI may sell for $900 million to $1 billion, one person said. A deal could still fall through in the final stages, or another company could make a bid.
Coty, which calls itself the world’s largest fragrance company, is the likeliest buyer for OPI, people familiar with the matter said last month. Private-equity firms Bain Capital LLC and Advent International Corp. were among the companies that also made bids, sources said.
Spokesmen for Coty and OPI didn’t respond to messages seeking comment outside of regular business hours.
OPI has annual sales of about $300 million and earnings before interest, taxes, depreciation and amortization of about $80 million, the people said last month. The North Hollywood, California-based company is seeking 11 to 12 times its earnings for the sale, they said.