Cosmetics giant Coty takes $600m stake in Kylie Jenner’s beauty business
Cosmetics giant Coty, which owns Rimmel London and Bourjois, has taken a $600m (£462.7m) majority stake in reality TV star Kylie Jenner’s beauty brand.
Coty will take responsibility for the development of new Kylie Cosmetics and Kylie Skin products, and act as a licensee for skincare, fragrances and nail products.
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The deal will allow Coty to access a younger generation of beauty consumers through Jenner’s more than 270m social media followers.
Coty will own 51 per cent of the business, which values it at around $1.2bn. The company made $177m in net revenues over the last 12 months, Coty said.
Jenner, who rose to fame as the youngest member of the Kardashian reality TV clan, launched her cosmetics business with lipstick and liner kits in 2015, which went on to sell out within minutes.
Last year Forbes named the 22-year-old as the youngest “self-made” billionaire, despite her famous family.
Coty chief executive Pierre Laubies said: “We are pleased to welcome Kylie into our organisation and family.
“Combining Kylie’s creative vision and unparalleled consumer interest with Coty’s expertise and leadership in prestige beauty products is an exciting next step in our transformation and will leverage our core strengths around fragrances, cosmetics and skincare, allowing Kylie’s brands to reach their full potential.”
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Coty, which is owned by German conglomerate Jab Holdings, has been investing in its skin care and fragrance products, and increasing marketing spend to combat falling sales.
The company has struggled to integrate about 40 beauty brands, including Covergirl and Max Factor, that it bought from Procter & Gamble for $12bn in 2016, following supply chain problems.
Main image credit: Getty