Coty’s executive chairman reaches deal to boost stock

Coty’s executive chairman Peter Harf has reached a deal to acquire the company’s shares from KKR & Co.

As of February, Harf owned 12.3 million shares, worth around $59m.

He now intends to raise his stake in the beauty company by $150m, reported Bloomberg.

Sue Nabi, who took over as Coty CEO in September, is looking to grow sales.

In October, Coty appointed L’Oreal veteran Isabelle Bonfanti as its chief commercial officer of luxury as the firm is looking to boost its growth in the Asia Pacific region.

In an interview, Harf had said: “I put my money where my mouth is. I believe in Coty and I believe in Sue and I am investing my own money into this company.”

The 74-year-old Harf is also chairman of JAB Holding, which is the largest shareholder in Coty, with 60% stake.

Currently, Coty’s market capitalisation is around $3.8bn.

Last week, Coty announced the divestment of its professional and retail hair business – including the Wella, Clairol, OPI and ghd brands (together called as Wella) – to KKR.

The sale is expected to complete by 30 November 2020.

The divestment will see KKR own 60% of the Wella entity, while Coty will have the remaining 40% stake.

Following completion of the deal, Coty will receive $2.5bn of proceeds, net of tax and expenses.