Coty Just Bought a Big Stake in Kylie Jenner’s Company
Author By Sophia VidaPosted on In an effort to expand its brand globally and into new categories, Coty said it is purchasing a sizeable stake in Kylie Jenner’s company, Kylie Cosmetics.
The beauty company announced Monday that it is taking a majority stake in Kylie Cosmetics that will give it a 51% stake in the company for $600 million.
Kylie Jenner, 22, will own the remaining part of the company and she and her team will continue to lead the company’s creative efforts related to products and communications.
“We are pleased to welcome Kylie into our organization and family,” said Coty CEO Pierre Laubies.
“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.”
The deal is expected to close in the third quarter of fiscal 2020. Coty values Jenner’s fragrance and cosmetics company at $1.2 billion.
Shares gained as much as 6% in premarket trading as Wall Street learned the news.
Disclaimer: We have no position in Coty Inc. (NYSE: COTY) and have not been compensated for this article.
