French American cosmetics manufacturer Coty Inc. will buy 51% shares of Kylie Cosmetics.
For control over the business of 21-year-old American model Kylie Jenner, the corporation will pay $ 600 million, with a total valuation of the company at $ 1.2 billion. After the deal with Coty, the company will be renamed Kylie Beauty, and the model will remain as the face of the brand. The deal is expected to close in the third quarter of 2020. After buying the business, Coty expects to grow profits annually by 1% for three years.
Model Kylie Jenner, who began her media career as a contestant on E!'s reality television show Keeping Up with the Kardashians, officially became the youngest self-made billionaire in history at age 21 in 2019, surpassing Mark Zuckerberg achievement. To date, Jenner is the 7th most followed author on Instagram, where more than 145 million people subscribe to her page.
Her beauty brands, Kylie Cosmetics and Kylie Skin, are among the fastest growing and most social media-influenced brands to date. The first of them was founded in 2015 and was originally called Kylie Lip Kits, specializing in the production of lipstick and lip care products. After expanding the product line, the brand was renamed Kylie Cosmetics.
After the transaction, Coty Corporation will use its own capabilities in the development, production and distribution of products - perfumes, cosmetics and care products. The company will also take on the role of cosmetics licensee. Coty owns a number of world famous cosmetic brands including Max Factor, Bourjois, Sally Hansen and Wella. The company's shares have grown by more than 80% since the beginning of 2019