Just after Forbes announced it is revoking Kylie Jenner’s “Billionaire” title as data reveals much smaller sales numbers for Kylie Cosmetics, Coty announces leadership changes. 

Chairman Peter Harf will assume the additional role of Chief Executive Officer at Coty. 

Harf is credited with “building modern-day Coty” the company states, while leading Benckiser. He was chief executive from 1990-2001 and then Chairman until 2011, during which time Coty again became an independent company with almost 14 times revenue growth. 

Harf is managing partner of JAB Investors, and he served as chairman and CEO of Benckiser N.V. and then deputy chairman of Reckitt Benckiser, which he formed through the merger of Benckiser N.V. with Reckitt Coleman in 1999.

Harf comments, “I’ve known Coty for a long time and there is a lot of potential within this company. I’m delighted to return to an active leadership role. We are all energized by the task ahead – to lead Coty to the best it can be. Further, in KKR, we have a world-renowned investor that will work alongside us in transforming Coty.”

The New 3-Person Executive Committee

Coty also announces its new three-person Executive Committee, formed in order to increase the speed of its decision making and create clear accountability for improved performance.

The Executive Committee members, shown above, are Harf, as well as Pierre-André Terisseas, chief operating officer and chief financial officer; and Gordon von Bretten, who joined Coty last week as the company’s first-ever chief transformation officer.

Finalizing the Deal with KKR

Coty today announced the signing of a definitive agreement with KKR as part of a strategic transformation that will deleverage its balance sheet, streamline its operations and strengthen its leadership team.

Under the definitive agreement, Coty and KKR have entered into a strategic transaction for Coty’s Professional and Retail Hair business, including the Wella, Clairol, OPI and ghd brands.

The deal values the businesses at $4.3 billion on a cash- and debt-free basis. KKR will own 60% of this separately managed entity and Coty will own the remaining 40%. As previously announced, KKR is investing $1 billion directly into Coty through the issuance of convertible preferred shares.

Looking Ahead – A ‘Simplified Focus’ on Beauty

The sale of a majority interest in the Professional and Retail Hair business simplifies Coty’s portfolio. It allows Coty to focus on its core Prestige and Mass Beauty businesses.

Coty’s plans for Prestige include reinforcing its leadership positions through innovation in fragrances and adjacent categories, a focus on the premium end of its portfolio, and the e-commerce development of the Prestige Beauty franchise.

Coty’s Prestige Beauty franchise includes Calvin Klein, Hugo Boss, Burberry, and Gucci — and  the recent addition of Kylie Beauty.

Coty’s plans for Mass Beauty include reinvesting in its power brands in priority markets to improve business fundamentals and expand its omni-channel presence. Key brands include Sally Hansen, Rimmel, CoverGirl, and Max Factor.

Photos: via Coty.com: Meet Our Leaders

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