Coty has entered into an agreement to acquire 20% stake in reality TV star Kim Kardashian West’s make-up brand KKW for $200m.
This takes the valuation of KKW to around $1bn.
Under the agreement, Coty will have the responsibility for the portfolio’s development in skincare, haircare, personal care and nail products, and leverage its deep understanding of the industry and its commercial and go-to-market expertise.
Coty chairman and CEO Peter Harf said: “Kim is a true modern day global icon. She is a visionary, an entrepreneur, a mother, a philanthropist, and through social media has an unparalleled ability to connect with people around the world.
“This influence, combined with Coty’s leadership and deep expertise in prestige beauty will allow us to achieve the full potential of her brands.”
Kim Kardashian West said: “Partnering with an established organisation like Coty will be instrumental in the advancement of my brands as their global reach allows for faster expansion so people around the world are able to experience new launches first hand.
“This relationship will allow me to focus on the creative elements that I’m so passionate about while benefiting from the incredible resources of Coty, and launching my products around the world.”
The acquisition is expected to complete in the third quarter of financial year 2021.
As per the agreement, Coty and Kardashian West will focus on foraying into new beauty categories as well as on expansion beyond her current product lines across the world.
Kardashian West and her team will lead the creative efforts with regard to product and communications initiatives, for which she will leverage her global reach capabilities through social media.
Kardashian West is one of the most recognised personalities with 300 million followers across her personal and brand social media channels.
The deal is part of Coty’s strategy to boost its beauty business and transform into a more agile company.
The products will be sold at luxury beauty retailers and through owned digital channels.
Tiger Chark served as an advisor to Coty on the deal.
In January this year, Coty bought a 51% stake in Kardashian West’s half-sister Kylie Jenner’s brands.
