Coty and KKR signed a Memorandum of Understanding for KKR to acquire a majority stake in Coty’s Professional Beauty and retail hair businesses at a contemplated enterprise value of $4.3 billion
Coty Inc. announced the signing of a Memorandum of Understanding (MOU) with global investment firm, KKR, for the sale of a majority in Coty’s Professional Beauty and Retail Hair business, including Wella Professionals, Clairol, OPI, and ghd brands (together ‘Wella’).
Terms of the MOU
Under the terms of the MOU, Coty will carve out ‘Wella’ and its portfolio of professional brands into a standalone company in which KKR will acquire a 60 percent stake and Coty will retain the remaining 40 percent interest. Coty’s mass beauty business in Brazil will remain a fully owned business of Coty.
KKR is expected to own 60 percent of ‘Wella’ and Coty 40 percent, subject only to completion of limited confirmatory due diligence and execution of definitive documentation. The agreement is expected to be signed by the end of May.
Insights Coty Professional Beauty
“In this year where Wella Professionals is turning 140 years old, I am proud and inspired at the prospect of Wella operating again as a standalone Company. Partnering with KKR will propel our people and our brands into a bright and successful new future,” commented Sylvie Moreau, President of Coty Professional Beauty.
“This announcement represents a great milestone for our Wella India organization. We are confident this partnership will bring new opportunities. In the meantime, we remain fully committed to supporting our customers and our industry as it bounces back from the COVID-19 crisis,” added Manish Bhagat, Country Manager, Coty India.
KKR is a pioneer of the global private equity model, with over 43 years of investment experience. The firm has a long track record of investing in branded consumer businesses, including the beauty sector. Its portfolio includes 109 companies with over $157 billion in annual revenues and employing over 637,500 people. With a global footprint on all continents and extensive local networks, KKR has a proven ability to support global businesses.