Coty Inc, the American multinational which owns over 70 beauty brands including Covergirl and Rimmel London, has bought a majority stake in Kylie Jenner Cosmetics for US$600 million.
Announcing the acquisition of the 51 percent stake, Coty said the company has entered into a long-term strategic partnership with the social media star “in order to jointly build and further develop Kylie’s existing beauty business into a global powerhouse brand”.
Under the deal, Coty and Kylie will work together “to set and lead the strategic direction of the partnership, focusing on global expansion and entry into new beauty categories”.
Kylie and her team will continue to lead all creative efforts in terms of product and communications initiatives, building on her unrivalled global reach capabilities through social media while Coty will have overall responsibility for the portfolio’s development including R&D, manufacturing and distribution and marketing.
Coty CEO Pierre Laubies said combining Kylie’s creative vision and unparalleled consumer interest with Coty’s expertise and leadership in prestige beauty products is an exciting next step in the company’s transformation.
“[The partnership] will leverage our core strengths around fragrances, cosmetics and skincare, allowing Kylie’s brands to reach their full potential,” he said.
Kylie one of the world’s biggest ‘influencers’ with over 270 million followers across her personal and brand social media channels, said she was excited to partner with Coty to continue to reach even more fans of Kylie Cosmetics and Kylie Skin around the world.
“I look forward to continuing the creativity and ingenuity for each collection that consumers have come to expect and engaging with my fans across social media,” she said.
“This partnership will allow me and my team to stay focused on the creation and development of each product while building the brand into an international beauty powerhouse.”
Featured as the youngest-ever self-made billionaire on the cover of Forbes Self-Made Billionaire issue in August 2018, Kylie is a successful entrepreneur, beauty mogul, fashion designer, author, TV personality and style icon.
In November 2015 Kylie launched Kylie Cosmetics with her Kylie Lip Kit.
Since then Kylie has expanded the collection to include other makeup products including eyeshadows, blushes, highlighters, concealers and brushes.
Following the success of the cosmetics brand, Kylie introduced Kylie Skin, a range of skincare products in May 2019.
Kylie also owns a fashion brand with her sister, the Kendall + Kylie Collection, as well as her website, KylieJennershop.com, which features merchandise and accessories.
Coty expects the deal with Kylie Jenner Cosmetics will boost the net revenue of its fragrance, cosmetics and skin care portfolio by more than 1 percent per annum over the next three years.
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