coty inc coty has entered into a binding letter of intent to sell a portion of its wella beauty and hair care brand stake to investment firm igf wealth management coty will sell a 36 stake in wella for 150 million reflecting a 4 premium to the book value of wella as of march 31 2023 after the transaction coty will retain a 223 stake in wella with an implied valuation of about 900 million the deal is expected to advance cotys objectives to actively deleverage including reaching its target of driving leverage towards 3x exiting cy23 the divestment is expected to close in the next two months subject to certain closing conditions coupling this deleveraging with a bestinclass medium term growth algorithm an active capital return program including 400 million in targeted future share buybacks and the continued momentum in our business it is clear that we are reinforcing cotys position as a beauty powerhouse said chief financial officer laurent mercier recently coty increased q4 fy23 guidance for revenue growth to 12 to 15 on a likeforlike lfl basis versus the previous outlook for 10 growth led by solid momentum in prestige and the recovery in the china market the company held 277 million in cash and equivalents as of march 31 2023 coty is a beauty company with a portfolio of brands across fragrance color cosmetics and skin and body care price action coty shares closed higher by 123 at 1237 on monday