Coty Said Considering Divestitures as Part of Turnaround

Coty Inc. may be gearing up to sell assets as part of its plan to turn the business around, according to industry sources. Two sources said the business is considering divestitures, and one well-placed source noted the company is looking to shed between $500 million and $1 billion in assets. It was unclear which assets specifically were on the chopping block. A spokeswoman for Coty said the company does not comment on rumors or speculation. There is also speculation that Alejandro Vicente, senior vice president and global head of M&A for Coty, may exit the group once the divestitures are complete. One source noted that selling assets could help Coty deleverage, which is one of the key tenets of the new management team’s turnaround plan. Coty had about $7.4 billion in net debt as of March 31, the company said. In July, Coty chief executive officer Pierre Laubies and chief financial officer Pierre-André Terisse said the company would now focus on deleveraging and profitability, and that investment efforts would center around 20 “mission critical” brands that are responsible for about 60 percent of total sales. Those brands include Rimmel, Burberry, Cover Girl, Wella, Hugo Boss, Max Factor, Gucci and OPI. At that time, Terisse told Wall Street

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