Overview
- Coty sold its remaining 25.8% stake in Wella to KKR-managed funds for $750 million and kept rights to 45% of any future sale or IPO proceeds after KKR’s preferred return.
- The company will allocate most of the proceeds to pay down short- and long-term borrowings, supporting a glidepath toward a longer-term leverage target of about 2.0x.
- Coty said the deal completes the Wella monetization program launched in 2020 and sharpens its focus on fragrances and other core growth areas.
- Executive Chairman Peter Harf and CEO Sue Nabi are departing, and Markus Strobel will become Executive Chairman and Interim CEO effective 1 January.
- The strategic review of Consumer Beauty, including mass color cosmetics and Brazil operations, remains underway, with more than $350 million in H1 FY26 free cash flow reinforcing deleveraging efforts.