Coty Inc. completed the sale of its remaining 25.8 % stake in Wella to private‑equity firm KKR for $750 million on December 19 2025, finalizing a divestiture that began in 2020 when Coty sold a majority stake in the professional hair business to KKR for roughly $2.5 billion.
The $750 million cash infusion will be applied almost entirely to reduce short‑ and long‑term debt, bringing Coty’s financial net leverage to about 3× by the end of calendar year 2025 and moving toward a long‑term target of 2×. The debt reduction strengthens the balance sheet and frees capital for future growth initiatives or shareholder returns.
Strategically, Wella has not fit Coty’s fragrance‑first focus. By exiting the hair‑care business, Coty can concentrate resources on its high‑margin prestige fragrance and ultra‑premium segments, which have driven recent revenue growth. The sale also completes the “All‑in to Win” transformation program that has been reshaping the company’s operating model and cost structure since FY20.
Analysts noted that the transaction was a key milestone in Coty’s deleveraging and portfolio‑simplification agenda. The market reaction was positive, with investors highlighting the immediate impact on leverage and the alignment with the company’s core‑business strategy.
CFO Laurent Mercier said the deal “marks a pivotal milestone in our transformation and deleveraging commitment,” adding that the partnership with KKR has strengthened Coty’s financial foundations and demonstrated the company’s ability to execute on long‑term commitments. The sale also precedes a leadership restructuring that will see the departure of President and CEO Sue Nabi, underscoring a broader shift in the company’s strategic direction.
The completion of the Wella divestiture positions Coty to focus on its core fragrance businesses, improve financial flexibility, and set the stage for future capital returns to shareholders.
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