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.