Coty to sell part of its shares to IGF Wealth Management for close to US$150 million
Well-known Coty Inc, one of the world’s largest beauty companies with a portfolio of iconic brands in fragrances, color cosmetics and skin and body care, announced that it has signed a binding letter of intent to sell a portion of its shareholding in Wella to investment firm IGF Wealth Management.
Specifically, the company intends to dispose of its 3.6% stake in Wella for approximately 134.8 million euros. Following this transaction, which is expected to be completed in the next two months, Coty will retain a 22.3% stake in Wella at an implied valuation of approximately $900 million, the equivalent of 808, 9 million euros.
Laurent Mercier, Coty’s Chief Financial Officer, said, “Today’s announcement is a milestone for Coty, as the partial monetization of our stake in Wella reinforces the strength of our balance sheet, with no debt maturities in the next 2 years and our remaining stake in Wella with an implied valuation of approximately $900 million.”
“Combining this de-leveraging with a world-class mid-term growth algorithm, an active capital return program, including $400 million in future targeted share repurchases, and continued momentum in our business, it is clear that we are strengthening Coty’s position as a beauty powerhouse,” concluded Mercier.
