Coty completes $200 million KKW Beauty deal
New York-based beauty company Coty Inc. has announced the completed acquisition of a 20% stake in Kim Kardashian West's beauty business, KKW Beauty, for $200 million.
The deal was first announced in June of 2020. In a press release, Coty said that the company and Kardashian West will focus on entering new beauty categories and global expansion beyond existing product lines, including the development of a skincare line set to launch in fiscal year 2022.
As part of the deal, Kardashian West and her team will lead the creative efforts relating to product and communications initiatives, while Coty will have overall responsibility for the portfolio’s development, including skincare, haircare, personal care and nail products. All products will retail through luxury beauty retailers as well as owned digital channels.
“[Kardashian West] 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, chief executive officer of Coty.
"Coty brings unique IP in skincare, 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."
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."
The acquisition marks Coty's latest buy-in to a Kardashian beauty empire since January, when the company completed the acquisition of a majority stake (51%) in Kylie Jenner's Kylie Cosmetics.
In June, KKW Beauty was valued at $1 billion. At the time of the Kylie Cosmetics deal announcement in November of 2019, Kyle Cosmetics was valued at $1.2 billion.
In November, Coty beat analysts' estimates for quarterly revenue as shoppers staying at home amidst the pandemic shopped for beauty online, sending the company's shares 5% higher in premarket trading.
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