BREAKING: Coty Closes $200M Kim Kardashian West Beauty Deal
UNITED STATES — It was just reported that Coty Inc. has closed a deal to acquire 20 percent of Kim Kardashian West’s beauty business, KKW Beauty, for $200 million.
The deal was first unveiled in June. Coty plans to bring KKW beauty into new categories, including skin care, which is slated to launch in fiscal 2022.
“Kim shares our true passion for beauty products, and this acquisition allows us to leverage our respective strengths for mutual benefit and value creation,” said Coty chief executive officer Sue Nabi in a statement. She expects Coty will bring scientific knowledge around formulation to the table, while Kardashian West will bring a massive following — she has 197 million followers on Instagram alone.
“She has a unique ability to read the latest beauty and wellness trends, while we have the expertise on global product positioning, access to a vast global distribution network, and the resources to enter new beauty categories,” Nabi continued.
Kardashian West and her team are meant to lead creative efforts around products and communications, while Coty will focus on developing skin care, hair care, personal care and nail products for the brand.
The arrangement is similar to the one that Coty struck with Kardashian West’s sister, Kylie Jenner.
Coty bought a 51 percent stake in Jenner’s business, Kylie Cosmetics, for $600 million. So far, it has started rolling out Kylie Skin in European retail and developed e-commerce operations for several major global markets. Last quarter, skin-care alone did $25 million in sales.
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