Coty Acquiring KKW Beauty
Coty has entered into an agreement to acquire a 20% ownership interest in Kim Kardashian West’s beauty business (KKW Beauty) for $200 million.
Under the agreement, Coty will have overall responsibility for the portfolio’s development in skincare, haircare, personal care and nail products, and will help build it into a high-growth direct-to-consumer beauty brand. This will include entering new beauty categories and global expansion beyond the existing product lines.
Kardashian West and her team will lead all creative efforts in terms of product and communications initiatives.
In January, Coty acquired a 51% stake in Kardashian West’s half-sister Kylie Jenner’s brands.
See also: Coty Names New CEO
“Kim is a true modern day global icon,” said Peter Harf, Coty chairman and CEO, in a statement. “She is a visionary, an entrepreneur, a mother, a philanthropist, and through social media has an unparalleled ability to connect with people around the world. This influence, combined with Coty’s leadership and deep expertise in prestige beauty will allow us to achieve the full potential of her brands.”
Kim Kardashian West commented: “Partnering with an established organization like Coty will be instrumental in the advancement of my brands as their global reach allows for faster expansion so people around the world are able to experience new launches first hand. This relationship will allow me to focus on the creative elements that I’m so passionate about while benefiting from the incredible resources of Coty, and launching my products around the world.”
The acquisition is expected to close in the third quarter of fiscal year 20201. All the business's products will be sold through leading luxury beauty retailers as well as owned digital channels.
Coty is No. 60 on CGT’s Top 100 Consumer Goods Companies of 2019.
