Coty Inc. said the sale of its professional division, including Wella, OPI and Clairol, to KKR, will close by Nov. 30.
The $2.5 billion transaction gives KKR 60 percent control over a joint venture. Coty will own the other 40 percent, which chief executive officer Sue Nabi recently said was valued at $1.3 billion.
Coty said it will get $2.5 billion in proceeds, which will help strengthen the beauty company’s capital structure. Of that capital, Coty plans to use $2 billion to pay down debt. The rest will be used for general corporate purposes, the company said.
The sale of the professional division is part of Coty’s plan to focus on its other business segments, including luxury fragrances and the ailing consumer division, which has yet to turn around since the company bought the specialty beauty portfolio of Procter & Gamble in 2016.
Nabi, Coty’s first ceo in years with beauty experience, has a plan to accelerate growth by developing Coty’s skin-care business, including Kylie Jenner’s Kylie Skin, and a skin-care line for Kim Kardashian West’s KKW Beauty. Nabi’s own skin-care brand, Orveda, will also become part of Coty.
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