Coty Inc. Announces Early Transition of Gucci Beauty License with Kering

Coty Inc. has agreed to end its Gucci Beauty license with Kering for approximately $400 million. The license, originally slated to end later, will now conclude by June 30, 2027. This strategic move enables Coty to reallocate capital and concentrate on its core prestige fragrance and beauty brands.

The agreement includes an immediate $250 million payout to Coty and a future $150 million contingent on specific criteria. This transaction facilitates Coty's debt reduction and investment objectives. Additionally, Coty will sell Gucci Beauty inventory to support the transition, alongside estimated cash taxes of around $30 million related to this deal.

Coty acquired the license in 2016, significantly expanding Gucci Beauty's market presence. Since 2019, revenues surged by over 60%, driven by popular lines like Gucci Flora and Bloom. The agreement with Kering also resolves all ongoing litigation, allowing both parties to focus on future strategies.