Anglo-Dutch consumer goods giant Unilever is to sell its Prestige fragrance arm to privately owned US fragrance group Coty for a minimum cash sum of $800 million.
Prestige, which made perfumes for various luxury goods groups such as Calvin Klein, Cerruti, and Chloe, had sales in excess of $600 million in 2004.
"This is an excellent strategic move for Unilever and one that is fully in line with our strategy to focus on our core categories," chief executive Patrick Cescau said in a statement.
Unilever failed to provide details on Prestige's earnings. But a spokesman said the company had decided it was an opportune time to sell the division after Prestige profits recovered in recent months following a prolonged period of underperformance.
With much of its revenues coming from Duty Free shops in international airports, Prestige was badly hit by a sharp drop in international travel following the 9/11 terrorist attacks.
Its problems were compounded by the subsequent Asian Sars epidemic and Iraq war.