WASHINGTON: Beauty products giant Coty announced Monday a deal to take a majority stake in Kylie Jenner’s cosmetics and skincare company, marrying Jenner’s celebrity prominence with Coty’s distribution and commercial prowess.
Under the transaction, Coty, whose brands include Hugo Boss and Burberry fragrances, will pay $500 million for a 51 per cent stake in Jenner’s company.
Jenner, the youngest daughter of Kris Jenner and Caitlyn Jenner, formerly known as Bruce Jenner, has more than 270 million social media followers and rates as “one of the most influential voices among beauty consumers globally,” said a statement from both companies.
She launched the brand in 2015 with “Kylie Lip Kit” and has since added eyeliners, eye shadows, blushes and other items.
“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.
“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.”
Coty described the deal as part of its effort to become a “more focused and agile company” adding that its global capacities in research and development, manufacturing and distribution, as well as expertise in cosmetics, would enable Jenner’s products to thrive as a “high growth, digitally native beauty brand.”
Coty Chief Executive Pierre Laubies said the deal “will leverage our core strengths around fragrances, cosmetics and skincare, allowing Kylie’s brands to reach their full potential.”
Shares of Coty rose 3.3 per cent to $12.31 in early trading.