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Stock impact report

Coty Completes Wella Divestment to Refocus on Fragrances [Yahoo! Finance]

Coty Inc. Class A (COTY) 
Last coty inc. class a earnings: 2/5 06:30 am Check Earnings Report
US:NYSE Investor Relations: investors.coty.com
Company Research Source: Yahoo! Finance
Inc. (NYSE:COTY) had sold its remaining 25.8% ownership in Wella, a multinational hair care and cosmetics brand, to KKR in a $750 million transaction, while retaining a share of proceeds from any sale or IPO in the future. Coty Inc. (NYSE:COTY) stated that it is entitled to 45% of any proceeds from a sale or IPO of the business after KKR's preferred return is achieved, and intends to utilise the upfront cash to pay off its debt. Due to intensifying competition from newer brands, the company went through challenges over the last few years, particularly in the mass beauty segment. With that said, the company initiated a strategic review and considered selling the business to fully concentrate on its fragrances segment earlier this year. This refocus stems from the continuously declining demand for colour cosmetics, Reuters noted. Africa Studio/Shutterstock.com Thus, the company stated that the divestiture brings an end to the 5-year-old program to streamline both its offerings and Show less Read more
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