Coty looks to offload brands including Wella, Clairol; shares rise

) is exploring the sale of its business unit that houses hair and nail care brands such as Wella, Clairol and OPI as part of its plan to whittle down its portfolio and cut debt, sending its shares up nearly 14% on Monday.

The cosmetics company has struggled to integrate about 40 beauty brands, including Covergirl and Max Factor, that it bought from Procter & Gamble in 2016, forcing it to take billions of dollars in writedowns and outline a four-year restructuring plan. “Coty is the No. 2 player in the global professional hair business, which has high consumer loyalty and should be an attractive business to a potential buyer,” Wells Fargo analyst Joe Lachky said.

Coty’s professional beauty unit, which primarily sells hair and nail care products to salon professionals, raked in about $1.81 billion in annual sales and accounted for about 21% of its total revenue.“ accelerates this transformation and will help ... deleverage our balance sheet, and improve our ability to invest in areas with the greatest growth potential,” Chief executive Officer Pierre Laubies said.

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