Beauty giant Coty said it is in exclusive talks with private-equity firm KKR on a $3bn deal to carve out Coty’s professional-beauty and hair-care businesses, which include Wella, Clairol, OPI and Good Hair Day brands.

The beauty and fragrance giant, which on 11 May also posted steeper losses for the fiscal third quarter as the Covid-19 pandemic has hurt demand, said that KKR would own a 60% stake in the carved-out company.