Coty acquires a majority stake in 3-year-old Kylie Cosmetics, valuing it at $1.2 billion. The transaction is a milestone in Coty’s ongoing transformation.
WHO: Kylie Cosmetics was launched by the youngest of the five Kardashian-Jenner sisters in 2015 with the Kylie Lip Kit, which was a sellout success on the brand’s website. The assortment has expanded the collection beyond lip products to include offerings like eyeliners, eyeshadows, blushes, highlighters, concealers, brushes, and makeup bags as well as creating limited-edition sets launched throughout the year. Following the success of the cosmetics brand, Kylie introduced Kylie Skin, a range of skincare products, in May 2019. Kylie Jenner is one of the world’s most-followed people on social media, with a combined following of over 270 million users and counting.
Coty is one of the world’s largest beauty companies with an iconic portfolio of brands across fragrance, color cosmetics, hair color and styling, and skin and body care. Coty is the global leader in fragrance, a strong number two in professional hair color & styling, and number three in color cosmetics. Coty’s products are sold in over 150 countries around the world.
WHY: The transaction is also a key milestone in Coty’s ongoing transformation into a more focused and agile company.
IN THEIR OWN WORDS: “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 skin care, allowing Kylie’s brand to reach their full potential,” Coty Chief Executive Officer Pierre Laubies said in a statement.
“I’m excited to partner with Coty to continue to reach even more fans of Kylie Cosmetics and Kylie Skin around the world,” Kylie Jenner said in a statement. “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.”
“This new partnership between Kylie and Coty is an exciting step in Coty’s renewed emphasis on its beauty business,” Coty chairman Peter Harf said in a statement. “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.”
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