Coty sells remaining stake in Wella
Coty has sold its remaining 25.8% stake in Wella to global investment firm KKR , further simplifying its portfolio and operations.
Under the terms of the transaction, Coty will receive $750 million in upfront cash, as well as 45% of any proceeds from a future sale or initial public offering of Wella, after KKR’s preferred return has been met.
The sale completes a divestment programme initiated in 2020, aimed at simplifying Coty’s portfolio while realising the full value of its Wella business.
Laurent Mercier, CFO at Coty, said: "This transaction marks a pivotal milestone for Coty – both in our transformation and in our long-running deleveraging commitment.
"Our strategic partnership with KKR has proven highly value accretive. We have benefited from Wella’s strong growth by progressively monetising our stake, allowing us to strengthen Coty’s financial foundations year-after-year.
"Completing this deal exactly inline with our original target to fully divest Wella by the end of CY25 underscores our focus on delivering on our financial commitments and crystallising value from non-core assets, all while sharpening our strategic focus."
Founded in Paris in 1904, Coty is one of the world’s largest beauty companies and operates in over 120 countries, offering both prestige and mass-market products.
The news comes after Coty reported a 6% decline in first-quarter revenue last month but remains confident in achieving a return to profitable growth in the second half of FY26 and beyond.
It followed the company's confirmation of plans to integrate its prestige and mass fragrance businesses more closely, aiming to realign the company with its core strengths and drive sustainable growth. The initiative is expected to enhance coordination and operational efficiency across its fragrance portfolio, which accounts for 69% of total sales.
In parallel, Coty also initiated a strategic review of its consumer beauty business, including mass-market brands such as CoverGirl, Rimmel, Sally Hansen, and Max Factor, as well as a separate Brazilian portfolio.
