Coty completes sale of Wella stake
Coty has confirmed that it has received $2.5 billion in cash from KKR for a 40% share in the leading global hair care business.
Executives at Coty have said that the funds will be used to pay off $2.5 billion in term loans, while the remaining funds will be used for general corporate purposes.
The company has divested the Wella business as part of its aims to cut back its debt, which should serve to cut back its total debt levels from $7.9 billion to $5 billion.
Taking into consideration that the Wella stake it retains is worth $1.3 billion, the company says that this puts its total debt level at $4.0 billion, a reduction that will better place it to invest in new brands and enhance its operating efficiencies.
It will also serve to simplify the business, streamlining it to focus on two core activities: Prestige Beauty and Consumer Beauty.
“Today marks an important milestone in Coty’s transformation and the development of a stronger, more focused and flexible business that’s set up for long-term success,” said Sue Y. Nabi, Coty’s CEO.
“As noted on our Q1 earnings announcement, we remain relentlessly focused on maintaining diligent cost control across the company and delivering on our financial commitments. As such, the Wella divestment reflects the excellent progress being made in improving Coty’s leverage profile. This substantial debt reduction will, in turn, enable us to increase investments behind our strategic priorities, including strengthening our business in core markets and categories, while simultaneously fueling our new growth engines: e-commerce & DTC, skincare, prestige make-up and Asia.”
L’Oreal and other beauty players secure CDP rating
Big names in beauty and personal care have appeared in this year’s CDP rating list, featuring brand owners such as L’Oreal and Kao, as well as suppliers Firmenich and Symrise.
In total over 300 companies made the A-List, which recognises environmental achievements by some of the world’s largest corporate entities. The CDP says that the achievements has occurred despite the challenges that have been thrown at these businesses due to the Covid-19 pandemic.
Each of the companies that made the list had to disclose information about climate change and forestry impact as well as water security through the CDP’s comprehensive questionnaire.
The CDP reports that the number of companies achieving an A-Listing result rose by 45% compared to 2019, a result that the CDP believes is an indication of growing environmental awareness in the business world.
This year more companies chose to back up their transparency with qualified data, which the CDP said was driven by marketing pressure on businesses to be more detailed about their environmental and sustainability improvements.
Indeed, this effort helped both Symrise and the Kao Corporation to make the A-List this year with a new Triple-A rating.
“This week marks exactly five years since global leaders shook hands on the Paris Agreement,” said Dexter Galvin, Global Director of Corporations & Supply Chains at CDP.
“It’s encouraging that 70% more companies are now reporting on their environmental action than in 2015, and that, this year, over 300 have reached the A-List.”
Other beauty and personal care players that made the list included BASF, AptarGroup, Beiersdorf, Givaudan and IFF.
AmorePacific research shows impact of mask-wearing
New research from a team of scientists at AmorePacific underlines the impact on the skin of using a face mask for longer periods of time.
The AmorePacific R&D team have published a paper on the subject that shows the changes that happen to the skin during a day of wearing a mask, the findings of which were published in the SCI-grade Journal Skin Research & Technology.
The AmorePacific team observed that the skin is subject to hotter and more humid conditions that are exacerbated the longer the mask is worn for, a daily reality for many individuals protecting themselves from the risk of Covid-19 infection.
The research findings showed that wearing a face mask increased the temperature of the skin which can lead to redness in a relatively short period of time, ultimately causing the skin around the mouth to become dry.
The research team underlined that the warm damp conditions under the mask might actually lead to heightened moisturisation of the skin, but the research found that, in fact, the opposite effect was observed.
The resulting skin dryness in the areas can lead to other implications, specifically causing wrinkling which should be treated by moisturising to avoid longer-term damage.
The researchers state that the study was inspired by reports of skin irritation and damage in face mask wearers during the pandemic, which have been particularly apparent in individuals who have to wear face masks for long periods of time because of their occupation.
Facial skin issues in mask wearers have been particularly well documented in health care workers, many of whom have been working longer hours wearing masks to treat patients impacted by Covid-19.
The AmorePacific R&D team says it plans to apply its findings to product development that will provide a skincare solution specifically targeting healthy skin for mask wearers.
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