Coty Sells Remaining 25.8% Stake in Wella for $750 Million Cash
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 03 2026
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Source: Yahoo Finance
- Equity Sale: On December 19, Coty announced the sale of its remaining 25.8% stake in Wella to KKR-managed capital accounts for an upfront cash payment of $750 million, significantly enhancing the company's liquidity and supporting future debt repayments.
- Financial Improvement: S&P Global anticipates that this transaction will reduce Coty's leverage to the high-3x range by the end of 2025, indicating effective management of financial risks and optimization of capital structure.
- Future Earnings Potential: Coty will also receive 45% of any proceeds from further sales or an IPO of Wella, which not only has the potential to generate additional cash flow but also provides the company with further opportunities to alleviate its debt burden.
- Strategic Simplification: This equity sale is part of Coty's strategic initiative to simplify its business since 2020, demonstrating the company's commitment to focusing on core operations while also exploring the sale of its Brazilian operations to further optimize asset allocation.
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Analyst Views on COTY
Wall Street analysts forecast COTY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for COTY is 4.61 USD with a low forecast of 3.00 USD and a high forecast of 10.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
1 Buy
10 Hold
2 Sell
Hold
Current: 3.130
Low
3.00
Averages
4.61
High
10.00
Current: 3.130
Low
3.00
Averages
4.61
High
10.00
About COTY
Coty Inc. is a beauty company with a portfolio of brands across fragrance, color cosmetics, and skin and body care. The Company has a diverse portfolio of brands, which includes both owned and licensed. Its brand portfolio is classified into two segments: Consumer beauty and Prestige. The consumer beauty brands include Adidas, Beckham, Bozzano, Bourjois, Bruno Banani, CoverGirl, Jovan, Mexx, LeGer by Lena Gercke, Monange, Nautica, Paixao, Rimmel, Risque, Sally Hansen, and Vera Wang. Its prestige brands include Burberry, Calvin Klein, Chloe, Davidoff, Escada, Gucci, Hugo Boss, Jil Sander, Kylie Cosmetics by Kylie Jenner, Lancaster, Marc Jacobs, Miu Miu, Orveda, and Tiffany & Co. Its mass beauty brands are primarily sold through hypermarkets, supermarkets, drug stores and pharmacies, mid-tier department stores, traditional food and drug retailers, and dedicated e-commerce retailers. It markets, sells and distributes its products in over 120 countries and territories.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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