Cosmetics owner Coty has completed its purchase of a 20% stake in Kim Kardashian West’s KKW Beauty brand.
The deal, which fetched US$200m, estimating the brand to be worth $1bn, will give Coty overall responsibility for KKW Beauty’s development of skin, hair and personal care products, as well as its nail portfolio.
“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 Sue Y Nabi, Coty’s CEO.
“Coty brings unique IP in skin care, the scientific knowledge of the skin as reflected in our formulation know-how, while Kim brings a huge global following and unparalleled influence over consumer choice.
“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.
“I look forward to working closely with Kim and her team and I’m excited by everything we will achieve together.”
Coty also confirmed that KKW Beauty’s skin care line is on track to launch in fiscal year 2022.
Kardashian West added: “I’m so proud of how the KKW brand has grown over the past four years and I look forward to working with Coty for the next phase of innovation, advancement and the ability to bring new launches to customers all around the world.
“This relationship will allow me to lead the development of the creative elements that I specialise in, while benefiting from the incredible resources of an established company like Coty.”
The transaction was announced in June last year and successfully completed on time
Seed Beauty is said to have issued KKW Beauty with a suit after Coty confirmed it was in talks with Kardashian West over a collaboration.
The US manufacturer is said to be asking a judge to block KKW Beauty from revealing trade secrets and practices to Coty.
Seed Beauty also sued the beauty brand of Kardashian West’s sister Kylie Cosmetics and Coty on the same grounds following Coty’s majority purchase of Kylie Cosmetics in 2019.
