This is the second major acquisition Coty has made from the Kardashian-Jenner clan.
Under the terms of the agreement, the US corporation, which manages dozens of cosmetic brands, will acquire 20% a stake in KKW Beauty for $200 million. Thus, the value of Kim Kardashian's cosmetics business is estimated at $ 1 billion. The deal is expected to close in the third quarter of fiscal 2021.
For KKW Beauty, the agreement will be an opportunity to expand its global footprint and get even more momentum. Coty and Kardashian will work together to create new categories and expand existing product lines. According to an official press release issued on June 29, Coty will focus on developing new products in categories such as skin care, hair and nail care, and personal care products. The exact release date of the brand's new products has not yet been announced.
At the same time, Kardashian West and her team will take on the creative side of the process, and the influence that Kim has on social networks will also be indispensable in the field of communications with consumers. The number of celebrity subscribers reaches 300 million, most of which are potential buyers of cosmetic products.
Coty Inc. group owns beauty brands such as Calvin Klein, Gucci, Hugo Boss, Marc Jacobs, Tiffany & Co, Burberry, Miu Miu, COVERGIRL, Max Facto Coty already made a major acquisition from younger sister Kim in January when Kylie Jenner sold a 51 percent stake in her Kylie Cosmetics for 600 million dollars.