Coty sells 9% of its stake in Wella to majority owner KKR
Oct. 1 (Reuters) – Coty Inc (COTY.N) announced on Friday that it would trade around 9% of its stake in professional beauty firm Wella with KKR & Co Inc (KKR.N) for a portion of the shares of cosmetics maker during the takeover of the United States. the company owns, valuing the deal at $ 426.5 million.
The deal reduces Coty’s stake in Wella to around 30.6%, valued at around $ 1.38 billion. Cosmetics maker CoverGirl sold a 60% stake to KKR for around $ 2.5 billion in December last year, with its remaining 40% stake valued at $ 1.3 billion at the time.
Coty said Wella’s value had risen since the sale of the majority stake was closed, as the reopening of salons across the world triggered a resumption in activity.
The deal, which is expected to be finalized in Coty’s second quarter of fiscal 2022, will also help fragrance maker Gucci simplify its capital structure and save $ 52 million a year, while increasing profits.
KKR’s stake in fragrance maker Hugo Boss would be reduced to the equivalent of approximately 45 million Class A Coty shares, representing a stake of approximately 5.2%.
Report by Praveen Paramasivam in Bengaluru; Editing by Krishna Chandra Eluri
Our standards: Thomson Reuters Trust Principles.