At a Glance
- Coty gains $750 million upfront, plus 45% from any future Wella sale or IPO.
- Nabi’s strategy boosts margins, focuses on prestige fragrances and selective brand investment.
- Debt reduction strengthened, net leverage expected around 3x by year-end 2026.
Coty Inc., one of the world’s largest beauty companies, has completed the sale of its remaining 25.8 percent stake in Wella to KKR-managed funds for $750 million, marking the end of a multi-year portfolio overhaul under CEO Sue Nabi, the Algerian-born French beauty tycoon who resigned yesterday.
Coty completes $750 million Wella sale as Sue Nabi retires
The transaction gives Coty upfront cash and 45 percent of future proceeds from any Wella IPO or sale, boosting debt reduction efforts and strengthening its balance sheet.
Under the transaction, Coty receives $750 million upfront, alongside 45 percent of any proceeds from a future sale or IPO of Wella, after KKR’s preferred return, a potential path to recover most, if not all, of Coty’s carrying value in Wella.
Under Nabi’s leadership, Coty refocused on prestige fragrances and selective brand investments, improving margins and operational efficiency. Her retirement on January 1, 2026, signals a leadership transition while leaving a leaner, more financially robust Coty positioned for growth.
Key details of the Wella divestment
The divestment closes the chapter on a portfolio overhaul initiated in 2020, during which Nabi, the Algerian-born French executive, reshaped Coty’s strategy and brand trajectory.
Under her leadership, Coty honed in on prestige fragrances and beauty, launching hits like Burberry Goddess, reviving underperforming brands, and improving margins across the portfolio. Operational discipline, selective brand investment, and sharper capital allocation became the hallmarks of her tenure.
Sue Nabi’s leadership impact on Coty
Financially, Nabi’s guidance delivered measurable results: net leverage has fallen to around 3x, easing investor concerns and restoring confidence in the company’s long-term outlook.
The Wella proceeds, net of tax, are earmarked to accelerate debt repayment, complementing Coty’s free cash flow generation of over $350 million in H1 FY26.
This deleveraging drive is expected to reduce net leverage to about 3x by year-end, strengthening the company’s balance sheet while freeing resources for core brand growth.
Future outlook under new leadership
With Nabi’s retirement on January 1, 2026, leadership transitions to Markus Strobel as Executive Chairman and Interim CEO, signaling continuity alongside renewed focus.
Coty’s CEO-in-waiting inherits a leaner, more financially robust company positioned to capitalize on its revitalized portfolio.
This milestone underscores Coty’s ability to unlock value from non-core assets while sharpening its strategic lens—an approach that combines operational rigor with capital discipline, hallmarks of billionaires-led corporate transformations.
