Coty Inc. is acquiring a 20% ownership interest in Kim Kardashian West's beauty business for $200 million and, under the terms of the deal, will have responsibility for the portfolio’s development in skin care, hair care, personal care and nail products, as well as global expansion plans. All the business's products will be sold through luxury beauty retailers and owned digital channels. The deal comes amid Seed Beauty's claims that its confidential business practices, which were applied to the growth of KKW Beauty and Kylie Cosmetics, are in danger of being inappropriately disclosed to Coty.
Coty expanded its relationship with the Jenner-Kardashian clan despite questions over the true scale of Kylie Cosmetics.
Per the new deal, Kardashian West and her team will lead all creative efforts in terms of product and communications initiatives.
The acquisition is expected to close in the third quarter of FY21.
“Kim is a true modern day global icon," said Peter Harf, Coty chairman and CEO. "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.”
Kardashian West noted, “Partnering with an established organization 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.”
