Coty Inc. has announced the signing of a Memorandum of Understanding (MOU) with the global investment firm, KKR, for the sale of a majority in Coty’s Professional Beauty and Retail Hair business, including Wella Professionals, Clairol, OPI, and ghd brands (together ‘Wella’).

Under the terms of the MOU, Coty will carve out Wella and its portfolio of professional brands into a standalone company in which KKR will acquire a 60 percent stake and Coty will retain the remaining 40 percent interest. Coty’s mass beauty business in Brazil will remain a fully owned business of Coty.

Sylvie Moreau, President of Coty Professional Beauty, said: “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.”