Coty Further Improves Capital Structure, with KKR Converting the Remainder of Their Convertible Preferred Shares into Common
November 10 2021 - 8:15AM
Business Wire
Coty Inc. (NYSE: COTY) ("Coty" or "the Company") today announced
the sale of KKR’s remaining 2.4% ownership stake in Coty, converted
into approximately 20 million common shares. This transaction
follows three earlier transactions over the last three months, as a
result of which KKR fully exits Coty. Following the completion of
the transaction, Coty’s convertible preferred share balance totals
approximately $146 million, or the equivalent of approximately 23
million common shares, held by Coty’s Chairman of the Board Peter
Harf.
The latest transaction will further simplify Coty’s capital
structure and result in additional annual dividend cash savings of
approximately $11 million, totaling approximately $77 million in
annual cash savings when combined with the three previous sales by
KKR. The deal is expected to be slightly accretive to Coty’s FY22
adjusted EPS, with no change to the Company’s FY22 adjusted EPS
guidance of $0.19-0.23.
Sue Y. Nabi, Coty’s Chief Executive Officer, stated, “With
today’s announcement, Coty further simplifies its balance sheet and
reduces its cost of capital, a significant milestone as we continue
to advance our strategy of unlocking value for shareholders. We
want to thank KKR for the outstanding partnership and look forward
to our continued cooperation in the years to come. We are delighted
that Johannes Huth will remain a Member of Coty’s Board.”
Johannes Huth, Partner of KKR and Head of KKR’s operations in
Europe, the Middle East, and Africa, stated, “Coty is making great
progress, becoming a true beauty powerhouse under Sue’s outstanding
leadership. The strategy which she and Coty’s leadership team have
implemented is working, evidenced by consecutive successful
quarters and is gaining momentum. KKR looks forward to continuing
our close collaboration with Coty through our shared ownership of
Wella and with Peter Harf joining the Wella Board.“
Peter Harf, Executive Chairman of Coty, stated, “This is a big
milestone for Coty. It further simplifies the capital structure,
which is now in its final shape. The remaining convertible
preferred shares are in my hands. JAB and I personally are proud
long term shareholders of Coty. This is both a testament to the
huge progress made under CEO Sue Y. Nabi, as well as of the clear
growth path ahead. I would like to thank KKR and Johannes Huth for
the great partnership.”
About Coty Inc.
Coty is one of the world’s largest beauty companies with an
iconic portfolio of brands across fragrance, color cosmetics, and
skin and body care. Coty is the global leader in fragrance and
number three in color cosmetics. Coty’s products are sold in over
150 countries around the world. Coty and its brands are committed
to a range of social causes as well as seeking to minimize its
impact on the environment. For additional information about Coty
Inc., please visit www.coty.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211110005807/en/
For more information, please contact: Investor
Relations Olga Levinzon 212-389-7733
Olga_Levinzon@cotyinc.com
Media Antonia Werther +31 621 394495
Antonia_Werther@cotyinc.com
Coty (NYSE:COTY)
Historical Stock Chart
From Mar 2024 to Apr 2024
Coty (NYSE:COTY)
Historical Stock Chart
From Apr 2023 to Apr 2024