Coty To Sell 3.6% of Stake in Wella to IGF Wealth Management

Coty Inc. has entered into a binding letter of intent to sell 3.6% of its Wella stake to investment firm IGF Wealth Management.

The $150 million deal is subject to the completion of due diligence. Following this transaction, which is expected to close in the next two months subject to certain closing conditions (including the approval of KKR), Coty will retain a 22.3% stake the company with an implied valuation of approximately $900 million.

Coty sold the majority of its stake in Wella to KKR in 2020.

“Today’s announcement is a milestone for Coty, as the partial monetization of our Wella stake reinforces the strength of our balance sheet, with no debt maturities in the next 2 years and our remaining Wella stake carrying an implied valuation of approximately $900 million,” said Laurent Mercier, CFO. “ The expected transaction is a concrete step in our commitment to both fully divest our retained Wella stake and reach leverage of approximately 2x by end of CY25. Coupling this deleveraging with a best-in-class medium term growth algorithm, an active capital return program, including $400 million in targeted future share buybacks, and the continued momentum in our business, it is clear that we are reinforcing Coty’s position as a beauty powerhouse.”