Coty has signed a licensing deal with Kim Kardashian West and agreed to buy a 20 percent stake in her existing KKW brand for $200 million, valuing the three-year-old business at $1 billion, according to the Financial Times.
WHO: KKW Beauty was launched by Kim Kardashian West in 2017, and the brand has branched into various areas of makeup and beauty, including an inclusive body line, as well as products for the face and fragrances.
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 KKW deal marks the latest step taken by Coty’s majority shareholder, JAB Holding, to turn around the unprofitable cosmetics group, whose shares have dropped by nearly two-thirds since the start of the year.
IN THEIR OWN WORDS: “This deal is similar to the one that Coty did with Kylie. The only difference is that Coty is taking a smaller position in Kim’s investment vehicle,” said Peter Harf, Chief Executive Officer of Coty, in an exclusive statement to WWD.
2 Article(s) Remaining