Beauty biz rumors: Wella weighs US IPO as Elemis sale talk emerges
Key takeaways
- IPO momentum is strengthening, with beauty emerging as a resilient and attractive sector for investors.
- KKR may be positioning Wella for value creation, potentially capitalizing on improved market sentiment after years of brand expansion.
- Portfolio reshuffling is accelerating in beauty, as groups like L’Occitane and Estée Lauder are reportedly exploring IPOs and brand divestments.
Wella Company is reportedly preparing for an initial public offering in the US. Meanwhile, rumors of Elemis weighing a potential sale have arisen.
IPO markets are showing renewed momentum, while beauty is revealing itself to be a resilient consumer category. KKR appears to be positioning Wella to benefit from improving investor appetite, potentially looking to unlock value after several years of ownership and brand expansion.
Investment firm KKR, owner of Wella, is said to be exploring an IPO as soon as this year. Sources told Reuters that the company has been working with investment banks such as Bank of America and Goldman Sachs for the listing.
According to people familiar with the matter, Wella could be sold for more than the US$4.3 billion KKR paid for the global beauty company.
In 2020, KKR first invested in Wella after buying a 60% stake from Coty. At the time of the transaction, Coty said it would be entitled to 45% of any proceeds from a future sale or an IPO of Wella, after KKR’s preferred return had been satisfied.
Coty recently faced its own business move speculation, with rumours that it could restructure its leadership following a struggling financial performance this year.
When Wella was spun off as a standalone company, the business was valued at US$4.3 billion, including debt. KKR has increased its ownership of Wella over the years, and in last December, bought its remaining 25.8% for US$750 million.
KKR may sell Wella Company.
Wella owns brands such as Wella Professionals, OPI, Briogeo, Ghd, and Clairol. It operates across the US and Europe and employs over 6,000 people globally.
Recently, L’Occitane Group was also reported to be considering an IPO in the US, less than two years after going private in 2024. Some reports project the final decision will be made “as soon as this year.”
Elemis sale speculation
Elemis, owned by L’Occitane Group, may be sold. The sale process is predicted to begin in March.
L’Occitane Group acquired the skin care brand from Steiner Leisure in 2019 for US$900 million. The potential sale is not L’Occitane’s first divestment from skin care. In 2024, Grown Alchemist said it left the group for more flexibility.
L’Occitane Group reported annual sales of €2.8 billion (US$3.26 billion) for its financial year 2025, which ended in March. This was the company’s first financial results since going private.
The multinational holding company attributed 31.6% of sales to Sol de Janeiro, which it acquired in 2021, and 48.4% to L’Occitane en Provence. Elemis made up 10.1% of the company’s revenue.
The unconfirmed sale reports follow leadership changes at Elemis. The brand’s co-founder and chief product and sustainability officer, Oriele Frank, announced her exit last week. Meanwhile, the general manager for Elemis UK, Susan Harvey, also left the company. 
L’Occitane Group may be reviewing portfolio priorities.
Elemis’ skin care catalog focuses on skin longevity, collagen support, and overall skin wellness.
Similarly, earlier this month, Estée Lauder Companies was said to be considering the sale of Smashbox, Too Faced, and Dr. Jart+ as a package deal. All three brands have been part of the beauty giant’s portfolio for years, being acquired during its major acquisition phase in the 2010s.
