OPI majority share sold to KKR as part of £3.5bn Coty deal

Investment firm KKR has signed an agreement to acquire a majority stake in the Coty Professional Beauty portfolio, including nail brand OPI, in a deal worth $4.3 billion (£3.5bn).

Under the terms of the agreement, Coty will make Wella, which includes OPI, along with hair brands Wella Professionals, Clairol, and GHD, a standalone company in which KKR will own a 60% stake and Coty will retain the remaining 40%.

Coty announced back in October that it was seeking a buyer for its professional division. Coty’s mass beauty business in Brazil will remain a fully owned business of Coty.

Sylvie Moreau, president of Coty Professional Beauty, commented: “We are thrilled with this announcement. KKR is one of the world’s preeminent investment firms with an exemplary track record of value creation.

"As a market leader with one of the strongest portfolios of brands in the professional beauty market, we believe this partnership opens up a new set of opportunities for ‘Wella’, our people, and our brands.”

Johannes Huth, partner and head of KKR EMEA, added: “We are excited to form this partnership to invest in Coty to support it through this period of unprecedented global uncertainty and allow it to emerge as a stronger, more agile business, and to acquire a majority stake in Wella, a market leader with a strong portfolio of brands...where we see significant opportunities to accelerate growth in partnership with its experienced leadership team. We look forward to working towards the establishment of a lasting and value-creating strategic partnership.”

Commenting on the sale, market analyst Kline said in a statement: "Kline expects the OPI professional nail care brand to seek greater retail and online sell-through, as nail salon businesses are likely to suffer the greatest closure casualties in professional beauty."

Coty purchased OPI from its American founders in 2010, later acquiring OPI's UK distributor Lena White Ltd in 2014.