For Millennials. By Millennials.

Kylie Cosmetics Company Shares Worth $600m Sold To Coty

0 794

Kylie Jenner just made a huge business decision. She is selling a stake of her makeup line, Kylie Cosmetics to Coty Inc. a beauty conglomerate that owns CoverGirl, Max Factor, Balenciaga, Tiffany & Co., Gucci, and Rimmel London.

Kylie Jenner sells a majority stake in her beauty company for $600 million

The youngest member of the Kardashian-Jenner clan sold a staggering 51% of her company’s share.

With more than 270 million followers on social media, 22-year old, Kylie Jenner has become one of the most influential celebrities in the world.. Her makeup brand and company Kylie Cosmetics was founded in 2015.

Starting initially with Lip Kits, and then eye shadow-palettes and other makeup products, Jenner expanded her empire with Kylie Skin Care; a range of face wash, scrub, moisturizer, and serums. Her business is successful and ever-growing as Kylie Cosmetics is now one of the leading names in the makeup industry.

Therefore, when it came to choosing a business partner, Coty paid a huge amount of $600 million for its stake in Kylie Cosmetics.

Coty Inc. is one of the leading beauty companies in the world, with roughly $9 billion in net revenue.

How will Kylie Cosmetics change?

The deal values the name-sake Kylie Jenner brand at $1.2 billion. According to the companies, this deal will enable “global expansion and entry into new beauty categories.” Coty stated that they will use their research and development, manufacturing, distribution, and commercial resources to expand Kylie Jenner’s business.

“I’m excited to partner with Coty to continue to reach even more fans of Kylie Cosmetics and Kylie Skin around the world,” Jenner said in a statement.

“This partnership will allow me and my team to stay focused on the creation and development of each product while building the brand into an international beauty powerhouse.”

But there’s nothing to worry about. Kylie Jenner will continue to be the face of both brands- Kylie Cosmetics & Kylie Skin. In fact, the creative design and Kylie-touch in her products that we all love will also remain the same.

Coty CEO Pierre Laubies added,

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.

Win-win for Kylie & Coty

Kylie Jenner won’t be the only one to get more expansion for her business. This deal will also enable Coty to boost its sales as the company has been struggling a bit.

The company hopes that a celebrity-backed beauty line might help their revenue and also reach a younger audience.

“Kylie is a modern-day icon,” said Peter Harf, Coty’s chairman of the board. In fact, after the news of the Jenner acquisition on Monday- Coty’s stock price rose about 1% on the same day. It sounds like a sweet deal to us!

Subscribe to our newsletter
Sign up here to get the latest news, updates and special offers delivered directly to your inbox.
You can unsubscribe at any time
Leave A Reply

Your email address will not be published.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More