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(Sharecast News) - Beauty company Coty has sold its remaining stake in haircare brand Wella to KKR for $750m, it was announced on Friday.
The US-listed firm will receive an immediate cash payment of $750m from the private equity giant.
It will then also receive 45% of any proceeds from either a further sale of the business or initial public offering, once KKR's preferred return has been met. Most of the upfront payment will be used to pay down debt, Coty confirmed.
The sale completes a programme launched by Coty in 2020 to simplify its portfolio and operations.
Laurent Mercier, chief financial officer, said: "This transaction markets a pivotal milestone, both in our transformation and in our long-running deleveraging commitment."
Coty first acquired Wella in 2015, when it bought P&G's beauty business in a blockbuster $12.5bn deal.
KKR invested in Coty in 2020 when it took a 60% stake in the group's hair and nailcare business, which included Wella.
Founded in Paris in 1904, Coty owns a number of beauty brands, including Rimmel, Max Factor, Sally Hansen and CoverGirl. It also licences fragrance brands, including Gucci, Chloe and Burberry. However, in September it announced a review of its consumer beauty business, part of plans to refocus on the more profitable fragrances unit.
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