The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
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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