Coty Inc., the conglomerate behind Clairol, Covergirl and Max Factor (to name a few) announced today that it will purchase 51% stake in Kylie Jenner’s beauty business — which includes Kylie Cosmetics and Kylie Skin. While Kylie gets to pocket $600 million, the deal values the business at nearly $1.2 billion, confirming her as a billionaire.
Per a statement released by Jenner, she will keep a 49% stake in Kylie Cosmetics and remain the creative lead on both product development and marketing initiatives. The acquisition is said to close in the Summer of 2020.
“I’m excited to partner with Coty to continue to reach even more fans of Kylie Cosmetics and Kylie Skin around the world. I look forward to continuing the creativity and ingenuity for each collection that consumers have come to expect and engaging with my fans across social media. 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,”
the statement reads.
Coty has lost half its value since 2016, taking $4 billion in write-downs just this year. The fragrance and cosmetic company plans to revive the company through Jenner’s profitable brand, which is on track to make $200 million this year and is the “Epitome of brands” capitalizing on their celebrity founders.
“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,”
said Pierre Laubies, chief executive officer for Coty in a statement.
Coty’s stock reportedly jumped 4% in the early Monday trading.