DivestmentJul 7, 2026, 04:28 PM
Coty to receive $400M for early Gucci Beauty license termination
AI Summary
Coty Inc. has entered into a License Termination and Transition Agreement with Kering and Gucci, ending the Gucci Beauty license one year early on June 30, 2027. Coty will receive approximately $400 million in consideration, with $250 million already received and the remaining $150 million due by September 30, 2027. The proceeds are intended for debt reduction, reinvestment in core fragrance and beauty brands, and organizational optimization. The agreement also resolves all pending litigation related to the license.
Key Highlights
- Coty to receive approximately $400 million for early termination of Gucci Beauty license
- License Agreement for Gucci Beauty to terminate on June 30, 2027, one year early
- Coty received $250 million in cash upon signing the Termination Agreement
- An additional $150 million will be received by September 30, 2027, subject to a $30 million holdback
- Proceeds to be used for debt reduction, reinvestment in core brands, and organizational optimization
- Coty to sell sufficient Gucci Beauty inventory to Kering for transition
- Mutual resolution of all pending litigation concerning the Gucci Beauty license
- Coty grew Gucci Beauty revenues by over 60% since 2019
Price Impact
More from COTY