THE WHAT? Coty has coined a deal to sell its 4.7 percent stake in Wella to private investment firm KKR, valued at approximately US$215.7 million.
THE DETAILS In exchange, Coty will redeem 56 percent of KKR’s remaining convertible preferred shares in the company, according to Nasdaq.
Upon completion of the deal, Coty’s total shareholding in Wella will reduce to approximately 25.9 percent.
KKR will retain a 2.4 percent ownership stake in Coty on an as-converted basis.
THE WHY? Coty CEO Sue Y. Nabi said, “Our strategy for unlocking value expansion in Coty has remained consistent, anchored on three key objectives: accelerating our sales and profit growth, deleveraging our balance sheet, and simplifying our capital structure.
“With today’s announcement we are well advanced on simplifying our balance sheet and capital structure objectives, while simultaneously confirming the strong and growing value of our Wella stake. This is another milestone in transforming Coty into a beauty powerhouse.”