Coty to write down $3 billion in assets as it restructures, shares tumble

By Aishwarya Venugopal (Reuters) - Coty Inc said on Monday it would write down about $3 billion in value of brands acquired from Procter & Gamble Co, as the struggling cosmetics maker laid out a four-year restructuring plan, sending its shares down as much as 19%. Coty splurged more than $12 billion to buy P&G's perfume, hair care and make-up businesses, including CoverGirl, Max Factor and Clairol, in 2016 to scale up its beauty business, but has since struggled due to supply chain disruptions in Europe and the United States and competition from nimbler rivals. Sales in the consumer beauty division have fallen in the past four quarters, as the company wrestles with competition from more affordable and Instagram friendly brands such as NYX, Kylie Cosmetics and ColourPop.

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