Coty Inc. bought a majority 51 per cent stake in beauty company Kylie Cosmetics for US$600 million.
The deal with Kylie Cosmetics, which is expected to close during the third of fiscal 2020, valued the company at around US$1.2 billion.
Kylie Cosmetics is owned and operated by Kylie Jenner, of the ubiquitous Kardashian-Jenner family, who was named Forbes Magazine’s “Youngest Self-Made Billionaire” earlier this year. She claimed the distinction from Facebook co-founder Mark Zuckerberg who was 23 years old when he made the billionaires’ list.
Kylie Cosmetics realised an estimated US$177 million net revenues over the past twelve months.
“Coty and Kylie will set and lead the strategic direction of the partnership, focusing on global expansion and entry into new beauty categories,” according to a joint release by the companies today. It continued that Jenner and her team will continue to lead the company’s creative efforts in product development and communications.
Jenner’s companies, Kylie Cosmetics and Kylie Skin, will join Coty Inc.’s enviable ranks which includes which includes luxury brands Marc Jacobs, Calvin Klein, Gucci, Tiffany and Co., Balenciaga and Burberry.
Meanwhile, Coty’s responsibilities under the partnership will also involve having overall responsibility for the portfolio’s development, leveraging its global knowledge and capabilities in research and development, manufacturing and distribution.
Pierre Laubies, Coty Chief Executive Officer said “We are pleased to welcome Kylie into our organisation and family. 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 our transformation and will leverage our core strengths around fragrances, cosmetics and skincare, allowing Kylie’s brands to reach their full potential.”
Jenner entered the beauty market with her Kylie Lip Kit in 2015, which sold out immediately upon release.
Coty is one of the world’s largest beauty companies with businesses in fragrance, skin, body care and cosmetics.