Overview
- Coty sold its remaining 25.8% interest in Wella to KKR-managed entities for $750 million upfront.
- The deal grants Coty 45% of any future sale or IPO proceeds once KKR achieves its preferred return.
- Coty will use the after-tax proceeds to repay short- and long-term borrowings as part of its deleveraging plan.
- Management cites over $350 million in first-half fiscal 2026 free cash flow to support guidance for net leverage near 3x by year-end 2025.
- The divestment completes Coty’s planned exit from Wella and comes as it reviews its mass color cosmetics and Brazil businesses, with potential for additional Wella-related cash bringing returns closer to carrying value.