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Coty Announces Agreement With Kering for Early Transition of Gucci Beauty License

  • Coty agreed to transition the Gucci Beauty license back to Kering for approximately $400 million in consideration.
  • The total consideration includes $250 million in cash at signing, $150 million payable by September 30, 2027, with up to $30 million contingent on specific criteria.
  • Coty will also sell sufficient Gucci Beauty inventory to Kering to support the transition.
  • Coty will continue operating the Gucci Beauty brand through at least June 30, 2027, ending the license one year ahead of the original term.
  • Proceeds will be used for debt paydown, reinvestment in Coty's core prestige fragrance & beauty brands, & organizational optimization.
  • The transaction includes a mutual resolution of all pending litigation & related claims between Coty & Kering.
  • Coty estimates cash taxes of approximately $30 million associated with this transaction.
  • Since 2019, Coty grew Gucci Beauty revenues by more than 60% under franchises including Gucci Flora, Bloom, Guilty, & Alchemist Garden.