Stock Groups

Coty to sell 9% stake in Wella to majority owner KKR By Reuters

by Mike Robinson

[ad_1]

© Reuters.

(Reuters) – Coty (NYSE:) Inc said on Friday it would swap around 9% of its stake in professional beauty business Wella with KKR & Co (NYSE:) Inc for some of the cosmetic maker’s shares the U.S. buyout firm owns, valuing the deal at $426.5 million.

This deal reduces Coty’s Wella stake to about 30.6%. It is valued at around $1.38 million. CoverGirl was a manufacturer of cosmetics for girls and sold a 60% stake in KKR to $2.5billion last December. It had its remaining 40% stake at $1.3billion at that time.

Coty stated that Wella’s value has increased after the sale of its majority stake. This is due to the reopening salons around the world, which has led to a rebound in business.

Coty is expecting to complete the deal in the second half of Coty’s fiscal 2022. This will allow Gucci fragrance manufacturer to simplify its capital structure. The company can save $52,000,000 annually while increasing its profits.

KKR’s stake in Hugo Boss would be reduced to roughly 45 million Coty class A shares. That is a stake approximately 5.2%.

Disclaimer Fusion MediaThis website does not provide accurate and current data. CFDs are stocks, futures, indexes or Forex. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. Because prices might not reflect the market, they may be incorrect. This means that prices cannot be considered indicative and are inappropriate for trading. Fusion Media does not accept any liability for trade losses that you may incur due to the use of these data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. You should be aware of the potential risks and financial costs involved in trading the financial market. It is among the most dangerous investment options.



[ad_2]