French-founded beauty brand Coty has sold its remaining 25.8 per cent stake in haircare brand Wella to private equity firm KKR.

The deal is expected to bring Coty $750 million up front and 45 per cent of any future sales proceeds. It comes as Coty looks to simplify its portfolio and operations.

“This transaction marks a pivotal milestone for Coty – both in our transformation and in our long-running deleveraging commitment,” said Laurent Mercier, Coty’s CFO. 

“Our strategic partnership with KKR has proven highly value accretive. We have benefited from Wella’s strong growth by progressively monetizing our stake, allowing us to strengthen Coty’s financial foundations year after year.

“Completing this transaction exactly in line with our original target to fully divest Wella by the end of 2025 underscores our focus on delivering on our financial commitments and crystallizing value from non-core assets, all while sharpening our strategic focus.”