THE WHAT? Coty has announced the anticipated completion of the sale of its Wella unit to KKR by November 30, 2020, according to a report published by Yahoo! Finance.
THE DETAILS The US beauty behemoth and KKR have amended and restated transaction agreements, Yahoo! Finance said, removing certain completion conditions.
The Wella unit comprises the Wella, Clairol, OPI and ghd brands. Under the terms of the deal, Coty will retain a 40 percent stake in the unit.
THE WHY? Coty is due to receive some US$2.5 billion from the sale, net of tax and expenses, which will help to strengthen its capital structure. It has said it will use US$2 billion to pay down its Term Loans A and B.