Coty Inc (COTY.N): COTY Announces Agreement With Kering for Early Transition of Gucci Beauty License

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Coty Inc (COTY.N): COTY Announces Agreement With Kering for Early Transition of Gucci Beauty License

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07 Jul 2026 19:05:30 ET │ 11 pages

Coty Inc (COTY.N)

COTY Announces Agreement With Kering for Early Transition of Gucci

Beauty License

CITI'S TAKE Neutral

Price (07 Jul 26 16:00) US$2.23 This afternoon COTY announced an agreement to transition the Gucci

Target price US$2.80 Beauty license back to Kering early for ~$400M in total consideration,

consisting of $250M in cash received at signing and an additional $150M Expected share price return 25.6%

payable no later than 9/30/27 (of which up to $30M is contingent on Expected dividend yield 0.0%

certain criteria). The transition accelerates the end of the license by ~1 Expected total return 25.6%

year, with COTY continuing to operate Gucci Beauty through at least Market Cap US$1,963M

6/30/27. Recall in October 2025, Kering announced a long-term strategic

partnership with L’Oreal giving it a 50-year exclusive license for the

creation, development, and distribution of fragrance and beauty products

for Gucci after expiration of the license with COTY (see our note here: Coty Filippo Falorni, CFAAC

Inc (COTY.N) - Implications from Kering Long-Term Partnership with +1-212-816-3743

L'Oréal). COTY plans to use transaction proceeds to repay debt, for filippo.falorni@citi.com

reinvestment in the core prestige fragrance & beauty portfolio, and for

organizational optimization, with estimated cash taxes ~$30M.

Early Transition of Gucci Beauty License: This afternoon COTY announced an

agreement to transition the Gucci Beauty license back to Kering early for ~$400M in

total consideration, consisting of $250M in cash received at signing and an

additional $150M payable no later than 9/30/27 (of which up to $30M is contingent