Cosmetics maker Coty Inc has agreed to sell a majority stake in its professional beauty and retail hair businesses, including the Wella and Clairol brands, to investment firm KKR in a deal valued at $4.3 billion (€3.97 billion).
Coty said it would receive about $3 billion in cash from the divestment.
The private equity firm will also invest an additional $1 billion and get two board seats as part of the partnership, the company said.
Coty said that under the deal, which also includes the OPI and ghd brands, the businesses will operate as a standalone company, with KKR acquiring a 60% stake and Coty retaining the rest.
Founding Partner of JAB and chairman of Coty, commented, "We are thrilled to enter into this strategic partnership with KKR, one of the world’s preeminent investment firms with an exemplary track record of value creation.
"Their investment and partnership will be instrumental to strengthening Coty’s balance sheet and helping the company to achieve long-term growth in shareholder value."
New York-based Coty said its mass beauty business in Brazil will remain a fully owned business of Coty.
Coty also said third-quarter sales declined 23% on a reported basis to $1.53 billion (€1.41 billion) in the three months ended 31 March.
News by Reuters, additional reporting by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.