NEW YORK, United States — Cosmetics maker Coty Inc on Monday said it had agreed to sell a majority stake in its professional beauty and retail hair businesses, including Wella and Clairol brands, to investment firm KKR in a deal valued at $4.3 billion.
Shares of the company rose about 11 percent in premarket trading.
Coty said it would receive about $3 billion in cash from the divestment.
The private equity firm will also invest an additional $1 billion and get two board seats as part of the partnership, the company said.
Coty said that under the deal, which also includes the OPI and ghd brands, the businesses will operate as a standalone company, with KKR acquiring a 60 percent stake and Coty retaining the rest.
New York-based Coty said its mass beauty business in Brazil will remain a fully owned business of Coty.
Coty also said third-quarter sales declined 23 percent on a reported basis to $1.53 billion in the three months ended March 31.
By Praveen Paramasivam; editor: Supriya Kurane.