WASHINGTON (dpa-AFX) - Coty Inc. (COTY), a beauty company, on Friday said it has sold its remaining 25.8% stake in Wella to KKR (KKR) managed capital accounts and affiliates for $750 million in upfront cash.
The transaction completes Coty's portfolio simplification program launched in 2020.
Under the terms of the transaction, the company will also receive 45% of any proceeds from a future sale or initial public offering of Wella after KKR's preferred return has been met.
Coty plans to use most of the net proceeds to reduce short- and long-term debt.
The deal is expected to lower net leverage to about 3x by end-2025, combined with strong free cash flow.
On Thursday, the Coty had closed at $3.2500, 0.3067 cents lesser on the New York Stock Exchange. In the after-market hours, the stock traded 0.0100 cents higher before ending the trade at $3.2600.
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