Coty Inc. (NYSE:COTY) is selling its remaining 25.8% stake in Wella to KKR-managed capital accounts for $750 million upfront. S&P Global Ratings reaffirmed a BB+ issuer credit rating for Coty Inc. on December 23. The sale is part of Coty Inc.’s strategic initiative to simplify its business operations.

The sale of the Wella stake is expected to bring Coty Inc.’s leverage to the high-3x area by the end of 2025. S&P Global Ratings believes that the company will use the cash received from the sale to address debt maturities. Coty Inc. is also exploring opportunities for the sale of its Brazilian operations.

Coty Inc. is a global beauty product manufacturer with two segments: Prestige and Consumer Beauty. While Coty Inc. shows investment potential, certain AI stocks may offer greater upside potential with less downside risk. Investors can explore undervalued AI stocks that benefit from current market trends.

Investors looking for potential AI stock investments can explore other opportunities besides Coty Inc. It’s essential to consider various AI stocks that align with current market trends for investment success. For more information on potential AI stock investments, consult Insider Monkey for detailed insights.

Read more at Yahoo Finance: S&P Global Ratings Reaffirms BB+ Rating on Coty Inc (COTY)