Coty is expected to sell a 3.6% stake in Wella for $150 million to investment firm, IGF Wealth Management.
Following this transaction, which is expected to close in the next two months subject to certain closing conditions, Coty will retain a 22.3% stake in Wella with an implied valuation of approximately $900 million.
Laurent Mercier, chief financial officer of Coty, said, "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 two years and our remaining Wella stake carrying an implied valuation of approximately $900 million. 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.”
