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Coty to Sell Majority Stake in Hair Businesses to Investment Firm KKR in $4.3 Billion Deal

The cosmetics maker also said third-quarter sales declined 23 percent to $1.53 billion in the three months ended March 31.
Coty website | Source: Shutterstock
By
  • Reuters

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.

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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.

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