In May, the cosmetics owner signed a memorandum of understanding to sell a 60% stake of its Wella, Clairol, OPI and ghd brands to KKR for $2.5bn
Coty has announced the completion of its Professional and Retail Hair business will take place in just 17 days.
As part of the deal, the private equity firm will acquire a 60% stake in Coty brands Wella, Clairol, OPI and ghd.
Together the businesses are valued at US$4.3bn, giving Coty a cash injection of $2.5bn.
Coty said the deal will give it the means to strengthen its capital structure and will use around $2bn of the funds to pay down its Term Loans A and B on a pro rata basis.
Earlier this month, Coty reported a surprise profit in Q1 with demand for beauty and fragrances up following the lockdown lull.
The CoverGirl owner’s CEO Sue Y Nabi said the results were a “testament that a stronger, more focused and more flexible Coty” was emerging during the pandemic.