Coty Sells Wella to KKR in $750 Million Deal

Coty Inc. has finalized a definitive agreement to sell its Wella professional hair care division to KKR, a global investment firm, in a cash transaction worth $750 million. The divestiture reflects Coty's ongoing strategy to streamline its portfolio and prioritize brands with stronger growth potential in the consumer beauty sector. The $750 million sale price underscores the continued value of Wella, a well-established name in professional hair care with a presence in over 100 markets. The transaction is expected to close in the second quarter of 2026, pending customary regulatory approvals. Upon completion, KKR will assume full ownership and operational control of Wella, including its portfolio of products under the Wella Professionals, System Professional, and Wella Koleston lines. For Coty, the proceeds from the sale will be used to reduce net debt and fund strategic initiatives, including investments in its premium fragrance and skincare brands. The company has reported that Wella contributed approximately $580 million in revenue during the fiscal year ending December 2025, though its profitability has faced pressure due to shifting consumer preferences and competitive dynamics in the professional hair segment. The deal signals a broader trend of private equity firms stepping into consumer goods assets deemed undervalued or underperforming in public markets. KKR's acquisition adds to its growing footprint in the beauty and personal care space, following prior investments in brands such as The Body Shop and TRESemmé. The transaction is also expected to impact Wella’s supply chain, R&D direction, and international expansion plans under new ownership.