The news comes after months of rumors about a deal.
On Monday, Coty Inc. announced that it had acquired a 51% stake in Kylie Jenner‘s Kylie Cosmetics for $600 million. Per a press release from the company, the deal creates a “long-term strategic partnership in order to jointly build and further develop Kylie’s existing beauty business into a global powerhouse brand.”
The news comes after months of rumors about the deal, with both Coty and Kylie Cosmetics declining to comment on the possibility in July. The Coty investment values the company at $1.2 billion. (Back in July of 2018, estimates had put Kylie Cosmetics around the $800 million valuation mark.)
In July of this year, Coty Inc. also announced a restructuring, including plans to move its headquarters out of New York to cut costs. (Coty has struggled to keep profits up for the past few years since acquiring 40 brands from Procter & Gamble, including Clairol, CoverGirl and MaxFactor, for a reported $12 billion.)
Coty’s majority stake in Kylie Cosmetics establishes a comprehensive presence for the company across many existing and potential categories. Per the release, “Coty Inc. will have overall responsibility for the portfolio’s development, leveraging its global knowledge and capabilities in R&D, manufacturing, distribution, commercial and go-to-market expertise, as well as its deep understanding of the fragrances, cosmetics and skin-care categories. In addition to its responsibilities within the partnership, Coty will act as a licensee for skin care, fragrances and nail products.”
Kylie Cosmetics first launched in 2015 with Lip Kits, which were an instant hit; the company reportedly brought in $420 million in sales in its first 18 months. Last spring, the company expanded into skin care with the launch of Kylie Skin, and there are also reports of plans to launch in both the hair-care and baby-care spaces.
“I’m excited to partner with Coty to continue to reach even more fans of Kylie Cosmetics and Kylie Skin around the world,” said Jenner in a press statement. “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. 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.”
A big congrats to Kris Jenner. (And, you know, her offspring as well.)
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