The US$600m deal will give the US conglomerate control of the Kylie Cosmetics and Kylie Skin brands
The beauty mogul was named the youngest self-made billionaire by Forbes in 2019 // Getty Images
US beauty conglomerate Coty has acquired a 51% stake in Kylie Jenner’s beauty brands in a US$600m deal.
The owner of Cover Girl and Rimmel London will take control of the Kylie Cosmetics and Kylie Skin brands including development, R&D, manufacturing, distribution and commercial expertise.
The firm will also act as a licensee for the brands’ new skin care, fragrance and nail products.
“This new partnership between Kylie and Coty is an exciting step in Coty’s renewed emphasis on its beauty business,” said Coty’s Chairman of the Board Peter Harf.
“Kylie is a modern-day icon, with an incredible sense of the beauty consumer, and we believe in the high potential of building a global beauty brand together.”
Meanwhile, 22-year-old Jenner said she was excited to partner with Coty in order to reach more consumers on a global scale.
She added: “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.”
Coty expects the transaction will boost the net revenue of its fragrance, cosmetics and skin care portfolio by more than 1% per annum over the next three years.
Coty’s CEO Pierre Laubies said: “Combining Kylie’s creative vision and unparalleled 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 skin care, allowing Kylie’s brands to reach their full potential.”
The takeover is expected to close in the third quarter of fiscal year 2020.