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Coty takes a fifth of the Kim Kardashian West beauty line
Posted on Monday, 29 June 2020 13:30
Coty has entered into a strategic transaction to acquire a 20.0 per cent stake in Kim Kardashian West’s beauty business, known as KKW, for USD 200.00 million.
The deal values the entire business at USD 1.00 billion, just short of the USD 1.20 billion valuation half-sister Kylie Jenner’s Kyle Cosmetics business received when the buyer agreed to take a 51.0 per cent holding for USD 600.00 million last year.
Together, Coty and KKW will focus on entering new beauty categories and global expansion beyond the existing product lines.
In addition, they will continue to build on the realty television star’s global reach through social media platforms.
The transaction is another step in Coty’s renewed emphasis on its beauty business and ongoing transformation into a more agile, focused company.
Kardashian West is one of the world’s most recognised personalities, with 300.00 million followers across her personal and brand social media channels, as well as being an influential voice among consumers globally.
Coty will have overall responsibility for the brand’s portfolio development in skincare, haircare, personal care and nail products.
Through the relationship, each party will further build a high growth, direct-to-consumer beauty business.
Completion is expected to occur in the third quarter of fiscal 2021, ending 31st March 2021.
According to recent media reports, Coty is in billions of dollars-worth of debt and has been struggling with slowing sales.
It recently sold a majority stake in its hair and nail care operations to KKR & Co for USD 3.00 billion.
Coty is billed as one of the world’s largest beauty companies, with products sold in over 150 countries around the world.
Kardashian West first entered the reality world with the 2007 launch of hit E! Entertainment show “Keeping Up with the Kardashians” where she also holds an executive producer credit.
The sisters, Kim, Kourtney, Khloe, Kylie, Kendall and mother Kris are now filming the nineteenth season of the show.
KKW launched her beauty line in 2017 and began selling products through Ulta Beauty stores in 2019.
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