## Coty Divests Final Wella Share in $750 Million KKR Transaction, Eyes Significant Debt Reduction

Coty Inc. (COTY) announced the completion of its strategic exit from Wella, offloading its remaining 25.8% ownership stake to KKR-managed investment vehicles for $750 million in immediate payment. The transaction marks the final chapter of the company's portfolio reshaping initiative that commenced in 2020.

Under the agreement terms, Coty will retain rights to 45% of any future proceeds generated from a Wella sale or public listing, contingent upon KKR's preferred returns being satisfied. This arrangement provides the beauty conglomerate with ongoing upside participation while immediately strengthening its balance sheet.

The company intends to deploy the bulk of net proceeds toward debt reduction, addressing both near-term and long-term obligations. Management projects that combined with robust free cash flow generation, this capital infusion will compress net leverage ratios to approximately 3x by the close of 2025. This deleveraging trajectory represents a critical milestone in Coty's financial stabilization roadmap.

Market response reflected investor optimism regarding the transaction terms. On Thursday's New York Stock Exchange session, COTY shares closed at $3.2500, declining $0.3067 from the previous close. However, after-market trading proved positive, with shares advancing $0.0100 to finish at $3.2600, signaling market support for the strategic maneuver.

The $750 million infusion underscores KKR's confidence in Wella's standalone value creation potential, while simultaneously allowing Coty to pivot toward financial consolidation and operational focus.