Coty to acquire stake in Kim Kardashian West’s beauty business for $200m
US beauty company Coty has agreed to acquire a 20% stake in American celebrity Kim Kardashian West’s beauty business for $200 million.
Coty and Kardashian West will focus on foraying into new beauty categories and global expansion beyond her present beauty product lines. Kardashian West and her team will head all creative efforts in terms of product and communications initiatives by consolidating on her global reach capabilities via social media.
Kardashian West boasts of 300 million followers across her personal and brand social media channels, apart from being an influential voice among beauty consumers across the world.
Kim Kardashian West said: “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.”
Coty to acquire stake in Kim Kardashian West’s beauty business for $200m. Photo courtesy of VOGUE Taiwan/Wikipedia.org.
For Coty, the deal is another step in its renewed emphasis on its beauty business and continuing transformation into a more agile, focused firm.
In January, the US beauty company acquired a 51% stake in Kardashian West’s half-sister Kylie Jenner’s makeup and skincare businesses.
Coty said that it will hold the overall responsibility for Kardashian West’s portfolio’s development in skincare, haircare, personal care, and nail products by making use of its deep understanding of the industry and its commercial and go-to-market know-how.
Through the partnership, both the parties will make use of each other’s unique strengths to further consolidate a direct-to-consumer beauty brand.
Peter Harf – Coty Chairman and CEO 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.”
All the products of Kim Kardashian West’s beauty business will be sold via major luxury beauty retailers and also owned digital channels, said Coty.
The acquisition is likely to be completed in the third quarter of FY21.