UPDATE 1-Coty to restructure, write down $3 bln in assets
(Adds details from statement, background)
July 1 (Reuters) - Coty Inc said on Monday it would overhaul its operations and write down about $3 billion in value of its brands acquired from Procter & Gamble Co in 2016.
The company has been struggling with weak sales due to supply chain disruptions in Europe and the United States, since buying about 40 P&G beauty brands including CoverGirl, Max Factor and Clairol for about $12 billion.
The P&G Beauty integration took longer and was more complex than originally envisioned, the U.S. beauty products maker said in a presentation.
"We will focus our strategic effort and investments on fewer brands globally while simplifying our operations and organization," Chief Executive Officer Pierre Laubies said.
Coty has reached an agreement with lenders to fund the restructuring plan that will reduce organizational layers and reorganize the business into regional units, it said.
As part of the plan, Coty said it would move its headquarters to Amsterdam from New York as the European city would be a "cost-efficient and tax stable location" and bring the company closer to its main markets.
Coty expects to incur $600 million in restructuring costs over fiscal year 2020 to 2023.
The much-awaited turnaround plan sent the stock up nearly 3%. Shares of the company have more than doubled in this year after falling about 67% in 2018. (Reporting by Aishwarya Venugopal and Aditi Sebastian in Bengaluru; Editing by Anil D'Silva)
