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Pfizer, one of the biggest US drug companies, has agreed to sell its Coty cosmetics and fragrance subsidiary to Joh. A. Benckiser, the German consumer products company, in a deal valued at $440m. The deal, expected to close by the end of June, comes nearly 30 years after Pfizer first acquired Coty, a leading supplier of men's and women's fragrances to US mass market retail outlets. Mr William Steere, Pfizer chairman, said the sale would allow Pfizer's management to focus on the business strategy of the company's main health-care operations. He said Pfizer's strategy would be to retain the group's other consumer products businesses, based on over-the-counter medications. Mr Steere said Coty's 1,162 employees would be 'better served by a strategic buyer'.

He said the fragrance and cosmetics company would be in a stronger position to realise its potential with Benckiser's commitment.' Benckiser, which is based in Ludwigshafen, has operations in more than 20 countries and is active in household products, fragrances and cosmetics. It sells a range of fragrance products through its US subsidiary. Mr Thomas Bonoma, executive vice-president of Benckiser, said Coty would provide a powerful array of additional brands to complement our existing lines. He also said Benckiser was eager to make use of Coty's US distribution network. On Wall Street, Pfizer's share price was improved by $1 1/4 to $72 1/8.

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