Beauty Packaging Staff11.12.20
Coty Inc. today announced that the sale of its Professional and Retail Hair business – including the Wella, Clairol, OPI and ghd brands – to KKR is anticipated to complete by November 30, 2020.
Back in May, Coty announced that it sold a majority stake in its Professional Beauty Division, making a $4.3 billion deal with investment firm KKR. And in October, KKR named Annie Young-Scrivner as the new chief executive officer of Wella Company.
Today's news includes an amended and restated transaction agreements between Coty Inc. and KKR. The terms remain the same, except for the removal of certain conditions and the sale and transfer of certain entities to Wella post-completion
After the sale, KKR owns 60% of the standalone Wella entity. Coty retains the remaining 40%.
Upon closing, Coty will receive $2.5 bn of proceeds, net of tax and expenses. The net proceeds coupled with Coty’s retained 40% stake in Wella, initially valued at $1.3bn, will considerably strengthen Coty’s capital structure.
Coty expects to utilize approximately $2bn of the net proceeds to pay down debt. Last week, Coty announced Q1 sales exceeeded its expectations.
Photos: (L) via Instagram/CotyInc Velvet Ink, Velvet The Lipstick and Rouge Velvet, reposted from @BourjoisParis (R) Instagram/wella
