{"id":379511,"date":"2020-11-12T08:03:30","date_gmt":"2020-11-12T13:03:30","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=379511"},"modified":"2020-11-12T08:03:30","modified_gmt":"2020-11-12T13:03:30","slug":"coty-announces-2-5bn-wella-sale-to-complete-by-november-30-2020","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/coty-announces-2-5bn-wella-sale-to-complete-by-november-30-2020\/","title":{"rendered":"Coty Announces $2.5bn Wella Sale to Complete by November 30, 2020"},"content":{"rendered":"

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Coty Announces $2.5bn Wella Sale to Complete by November 30, 2020<\/b><\/p>\n

NEW YORK–(BUSINESS WIRE<\/a>)–
\nCoty Inc. (NYSE: COTY) today announced that the strategic sale of its Professional and Retail Hair business \u2013 including the Wella, Clairol, OPI and ghd brands (together, \u201cWella\u201d) \u2013 to KKR is anticipated to complete by November 30, 2020. The Company and KKR have entered into amended and restated transaction agreements which remain substantially the same as the original agreements, with the primary adjustment being the removal of certain completion conditions and the sale and transfer of certain entities to Wella post-completion.\n<\/p>\n

\nThe sale will see KKR own 60% of the standalone Wella entity, while Coty retains the remaining 40%. Upon closing, Coty will receive $2.5bn of proceeds, net of tax and expenses. The net proceeds coupled with Coty\u2019s retained 40% stake in Wella, initially valued at $1.3bn, will considerably strengthen Coty\u2019s capital structure. Coty expects to utilize approximately $2bn of the net proceeds to pay down its Term Loans A and B on a pro rata basis, with the remainder used for general corporate purposes.\n<\/p>\n

Forward Looking Statements<\/span><\/b><\/p>\n

\nCertain statements in this Earnings Release are \u201cforward-looking statements\u201d within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company’s current views with respect to, among other things, the sale of the Professional and Retail Hair business, including the Wella, Clairol, OPI and ghd brands (the \u201cWella Business\u201d) and the investment by Rainbow UK Bidco Limited ((\u201cKKR Bidco\u201d) an affiliate of funds and\/or separately managed accounts advised and\/or managed by Kohlberg Kravis Roberts & Co. L.P. and its affiliates (collectively, “KKR”)) in connection with the standalone business (the \u201cWella Transaction\u201d), including timing of the Wella Transaction and the use of proceeds from the Wella Transaction. These forward-looking statements are generally identified by words or phrases, such as \u201canticipate\u201d, \u201care going to\u201d, \u201cestimate\u201d, \u201cplan\u201d, \u201cproject\u201d, \u201cexpect\u201d, \u201cbelieve\u201d, \u201cintend\u201d, \u201cforesee\u201d, \u201cforecast\u201d, \u201cwill\u201d, \u201cmay\u201d, \u201cshould\u201d, \u201coutlook\u201d, \u201ccontinue\u201d, \u201ctemporary\u201d, \u201ctarget\u201d, \u201caim\u201d, \u201cpotential\u201d, \u201cgoal\u201d and similar words or phrases. These statements are based on certain assumptions and estimates that we consider reasonable, but are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual events or results (including our financial condition, results of operations, cash flows and prospects) to differ materially from such statements, including risks and uncertainties relating to:\n<\/p>\n