Coty has announced that they’ve signed a Memorandum of Understanding (MOU) with global investment firm KKR for the sale of a majority stake in their company—valued at an estimated $4.3 billion.
The MOU states that Coty will carve out Wella and its professional brands, including Sebastian Professional, Nioxin, Clairol Professional, ghd and OPI, as its own standalone company, which KKR will acquire a 60 per cent stake of. Coty will retain the remaining 40 per cent.
“We are thrilled with this announcement. KKR is one of the world’s preeminent investment firms with an exemplary track record of value creation,” says Sylvie Moreau, president of 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.”
The agreement is expected to be signed by the end of May.