Coty agrees to sell a roughly 9% stake in Wella to KKR for convertible preferred shares valued at $426. 5 mln

Published Oct 01 2021 at 10:46 AM GMT
  • Coty Inc shares jumped 2 3% in premarket trade Friday, after the company announced a definitive agreement to sell a roughly 9% stake in beauty and hair care company Wella to private-equity firm KKR & Co for the redemption of half of KKR's remaining convertible preferred shares in Coty.
  • The deal will reduce Coty's shareholding in Wella to about 30.6% and reflects a 50% gain in Wella's value since Coty closed the sale of 60% of the company to KKR in December of 2020, Coty said in a statement.
  • The preferred shares and accrued dividends are equal to about 47 million common shares, or $426.5 million.
  • Once the deal closes, KKR will own about 45 million Coty Class A shares, equal to a5 2% stake.
  • The deal will simplify Coty's capital structure and lead to annual dividend cash savings of about $26 million, or $52 million when combined with KKR's secondary share offering that closed in September.



  • Published Oct 1, 2021 10:46 AM GMT