Ascendia Brands Inc. said it agreed to buy the healing garden and Calgon brands and assets from Coty Inc. for $125 million, plus milestone payments of up to $20 million in cash and debt.

The company said Calgon and the healing garden are the top two brands, respectively, in the specialty bath sector based on annual sales. They will complement Ascendia’s existing Lander and Lander Essentials brands, as well as Mr. Bubble and Lander Kids brands in the children’s bath segment.

Ascendia expects the acquisition to almost double annual revenue to about $200 million, and add to profit in the company’s 2008 fiscal year.

Under terms of the deal, Ascendia could become obligated to pay Coty up to an added $15 million in cash and issue up to an additional $5 million in subordinated debt in July 2009, based on certain earn-out provisions.

Bernd Beetz, Coty’s chief executive, said the company constantly reviews its portfolio mix to emphasize global versus local brands, especially in the fragrances and cosmetics businesses, and will continue to acquire and selectively divest brands.

The deal is expected to close before March 1, subject to the completion of financing and other closing conditions.

Hamilton, N.J.-based Ascendia owns a portfolio that includes the Baby Magic, Binaca, Mr. Bubble and Ogilvie. The company operates two manufacturing facilities, in Binghamton, New York, and Toronto, Canada.