NEW YORK — Procter & Gamble Co. (P&G) is selling some of its best-known beauty brands to Coty Inc. for $12.5 billion. The 43 brands changing hands generate annual sales of $5.9 billion, the companies said on July 9 in announcing the deal.

Procter & Gamble Co. (P&G) is selling some of its best-known beauty brands to Coty Inc. for $12.5 billion. The 43 brands changing hands generate annual sales of $5.9 billion, the companies said on July 9 in announcing the deal.

The complex transaction permits P&G, the world’s largest consumer products company, to focus on its biggest brands, including Tide, Pampers and Crest. P&G is hanging on to some beauty brands, including Pantene shampoo and Olay facial moisturizers, each of which generates $1 billion a year in revenue.

Acquisition of the perfume, hair care and makeup businesses allows Coty to more than double in size and become a stronger and more diversified company. Coty is adding Hugo Boss and Gucci to its fragrances offerings and CoverGirl and Max Factor to its cosmetics portfolio. Coty also gets P&G’s Wella and Clairol hair coloring brands.

Coty executives said the deal expands its global reach. Coty sells fragrances, cosmetics and skin care products under such brands as Calvin Klein, Marc Jacobs, OPI and Sally Hansen.

The transaction will be conducted as a Reverse Morris Trust, meaning that P&G will slice off part of its beauty business, which will then merge with a Coty subsidiary. The arrangement is meant to reduce taxes for the companies’ shareholders.

P&G said that the tax-efficient nature of Coty’s offer maximizes value for P&G shareholders and minimizes annual earnings dilution. The transaction will result in a onetime earnings gain in the range of $5 billion to $7 billion that will be recorded at closing, probably in the second half of 2016, the company said.

"This represents a significant step forward in the work to focus our portfolio on 10 categories and 65 brands that best leverage P&G’s core competencies," P&G chief executive officer A.G. Lafley said of the deal. "We have leading global brand positions in these categories, consumer-preferred products and leading brands in the largest markets. These businesses and brands have historically grown faster and have been more profitable than the balance. We expect these 10 categories to grow and create value as we focus the energy and resources of the company exclusively on them.

"The merger with Coty, a strategic acquirer, will provide an excellent new home for these businesses and brands, as well as for the talented people who are operating them. We look forward to a successful transition, and we will work together to maximize value for shareholders of both companies."

Lafley announced last year that he intended to sell more than half of the company’s brands — as many as 100 in all — to focus on the brands that account for 90% of the company’s sales and 95% of its profits. Divestiture would also allow P&G to grow faster and create more value by making it a simpler company that is easier to manage, he said at the time.

Retailers have since speculated about buyers for the businesses and how new owners might reinvigorate P&G’s venerable brands. P&G’s beauty business accounted for nearly one-quarter of the company’s revenue last year, making it the company’s biggest unit.

The sale is the largest divestiture yet for P&G, which last year sold its Duracell battery brand and most of its pet food business.