US beauty company Coty has agreed to acquire a 51% stake in Kylie Cosmetics and Kylie Skin, the makeup and skincare businesses of American celebrity Kylie Jenner for $600 million.
The transaction is part of a long-term strategic partnership between Coty and Kylie Jenner with an objective to build and further develop the latter’s beauty business into an international powerhouse brand.
Coty and Kylie Jenner will jointly set and lead the strategic path of the partnership with a focus on international expansion and foray into new beauty categories. Kylie Jenner and her team will continue to head all creative efforts in terms of product and communications initiatives, consolidating on her global reach capabilities via social media.
With more than 270 million followers across her personal and also brand social media channels, Kylie Jenner is considered one of the most influential voices among beauty consumers across the world. Kylie Cosmetics and Kylie Skin are both claimed to be one of the most-engaged and fastest-growing beauty brands on social media.
Coty strikes partnership with Kylie Jenner. Photo courtesy of Josh Park/Wikimedia Commons.
Kylie Jenner said: “I’m 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.
“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.”
For Coty, the deal is said to be an important milestone in Coty’s ongoing transformation into a more focused and agile business. The global beauty company will have overall responsibility for the development of the portfolios of Kylie Cosmetics and Kylie Skin businesses.
Coty expects to use its manufacturing, distribution, commercial and go-to-market expertise, global knowledge and capabilities in R&D, and also its deep understanding of the fragrances, skincare, and cosmetic categories, to develop the partnership.
Additionally, Coty will be a licensee for skincare, fragrances, and nail products.
The partnership is expected to see each party to make use of its unique strengths to further consolidate a high growth, digitally native beauty brand.
Pierre Laubies – Coty CEO said: “We are pleased to welcome Kylie into our organization 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.”
The transaction is likely to close in Q3 2020. All beauty categories within the new partnership will continue to be sold via major luxury beauty retailers and also through owned digital channels.
Coty’s advisor on the transaction has been Tiger Chark.
Last month, Coty disclosed plans to sell its professional beauty business and associated hair brands, and also its Brazilian operations as part of its ongoing transformation. The possible sale is likely to help the US beauty company to focus more on its fragrance, cosmetics and skincare businesses.