Perfume maker Coty Inc agreed to buy Philosophy Inc., a maker of personal care products, for about $1 billion.
Philosophy is currently owned by private equity company Carlyle Group, Reuters said.
Philosophy focuses on skin products, fragrance, bath and body care and color cosmetics. Its products are sold at retailers including QVC and Nordstrom. The company is expected to post sales of more than $200 million in 2010.
Coty is the world's largest fragrance company, and holds brands including Calvin Klein, Kenneth Cole and Davidoff.
Carlyle bought Philosophy in March 2007.
Forex for Beginners
Learn about trading currencies and foreign exchange transactionsView Course »