Coty confirms sale of Professional Hair business to KKR
Coty has announced that the sale of Wella, which includes Clairol, OPI and GHD (Good Hair Day) brands to KKR for $2.5 billion will be completed by November 30, 2020. Coty and KKR have entered into amended and restated transaction agreements which remain substantially the same as the original agreements, with the primary adjustment being the removal of certain completion conditions and the sale and transfer of certain entities to Wella post-completion. KKR will own 60% of the standalone Wella entity, while Coty retains the remaining 40%. The sale of a majority interest in the Professional and Retail Hair business simplifies Coty’s portfolio and will allow Coty to focus on its core Prestige and Mass Beauty businesses:
- Prestige: Coty will reinforce its leadership positions through innovation in fragrances and adjacent categories, a focus on the premium end of its portfolio, and the e-commerce development of the Prestige Beauty franchise, which encompasses iconic brands, such as Calvin Klein, Hugo Boss, Burberry, and Gucci, as well as the recent addition of D2C brand Kylie Beauty.
- Mass Beauty: Coty will reinvest in its power brands in priority markets to improve business fundamentals and expand its omnichannel presence. Key brands include Sally Hansen, Rimmel, CoverGirl, and Max Factor.
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