Coty to Explore Sale Options for Professional Business

Coty to Explore Sale Options for Professional Business

Coty Inc. has tapped Credit Suisse to explore a sale of the beauty group's professional business, which includes Wella, Clairol, OPI, Ghd and other brands.
Coty is also considering a sale of its Brazilian operations. Together, the businesses are expected to generate $2.7 billion in net sales for fiscal 2019.
The proceeds from any disposals would be used to pay down debt and return cash to shareholders, and allow Coty — which is in the midst of a turnaround after buying billions in struggling beauty assets from Procter and Gamble in 2016 — to focus on fragrance, cosmetics and skin care.
Pierre Laubies, Coty's chief executive officer, said that the decision will help accelerate the group's transformation and "reposition Coty as a more focused and agile company" while helping to deleverage the balance sheet.
"After a thorough analysis, the management team and board reached the conclusion that even with its strong current performance, the future growth opportunities of the Professional Beauty business lie increasingly outside the company's core strategic focus," a Coty statement read.
"The board is highly confident in Coty's ability to leverage our unique portfolio of fragrance, cosmetics and skin care brands, and capture the growth of the beauty category," said Peter Harf, chairman of the board and founder of Coty majority owner JAB, said in a statement.
In July, WWD reported that Coty was considering divestitures as part of its turnaround plan.
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