Coty Secures $400 Million Early Exit from Gucci Beauty License, Operations Continue Through June 2027
COTY•Coty will receive approximately $400 million—$250 million at signing and $150 million by September 2027—for early termination and inventory sale of its Gucci Beauty license, which it will operate through June 30, 2027. Proceeds will fund debt reduction, reinvestment in core prestige fragrance and beauty brands, and organizational optimization.
1. Early Transition Agreement Details
Coty has agreed with Kering to end its Gucci Beauty license one year early for about $400 million, consisting of $250 million at signing and $150 million by September 30, 2027. Coty will also sell sufficient Gucci Beauty inventory to Kering to facilitate the transition.
2. Financial Considerations and Allocation
Up to $30 million of the deferred payment is contingent on meeting specified criteria, and Coty expects roughly $30 million in cash taxes from the transaction. Proceeds are earmarked for debt reduction, reinvestment in core prestige fragrance and beauty brands, and organizational optimization.
3. Operational and Strategic Impact
Coty will maintain operation of the Gucci Beauty brand through at least June 30, 2027, supporting legacy franchises such as Flora, Bloom, and Guilty. The agreement includes mutual resolution of all pending litigation, allowing both companies to focus on their strategic priorities.
