KKR Sells Remaining 2.4% Stake in Coty

Coty Inc. today announced the sale of KKR’s remaining 2.4% ownership stake. The transaction follows three earlier transactions over the last three months; as a result KKR has fully exited Coty. 

Earlier this week, Coty announced its quarterly results as well as a transaction that reduced KKR's ownership take to just 2.4%. 
 
Following the completion of the transaction, Coty’s convertible preferred share balance totals approximately $146 million, or the equivalent of approximately 23 million common shares, held by Coty’s Chairman of the Board Peter Harf.
 
The latest transaction will further simplify Coty’s capital structure and result in additional annual dividend cash savings of approximately $11 million, totaling approximately $77 million in annual cash savings when combined with the three previous sales by KKR, said Coty. 
 
Johannes Huth, Partner of KKR and head of KKR’s operations in Europe, the Middle East, and Africa, will remain a member of Coty’s Board.
 
“With today’s announcement, Coty further simplifies its balance sheet and reduces its cost of capital, a significant milestone as we continue to advance our strategy of unlocking value for shareholders. We want to thank KKR for the outstanding partnership and look forward to our continued cooperation in the years to come. We are delighted that Johannes Huth will remain a member of Coty’s Board,” said Sue Y. Nabi, Coty’s Chief Executive Officer.
 
 “Coty is making great progress, becoming a true beauty powerhouse under Sue’s outstanding leadership. The strategy which she and Coty’s leadership team have implemented is working, evidenced by consecutive successful quarters and is gaining momentum. KKR looks forward to continuing our close collaboration with Coty through our shared ownership of Wella and with Peter Harf joining the Wella Board,” said Huth.
 
Peter Harf, executive chairman of Coty, call today’s news “a big milestone.”

“It further simplifies the capital structure, which is now in its final shape. The remaining convertible preferred shares are in my hands. JAB and I personally are proud long term shareholders of Coty. This is both a testament to the huge progress made under CEO Sue Y. Nabi, as well as of the clear growth path ahead. I would like to thank KKR and Johannes Huth for the great partnership,” he said.