Kylie Jenner has wrapped agreement to sell a 51% stake of her cosmetics line business to CoverGirl owner Coty, in a deal that values the reality TV star’s company at a total value of about $1.2 billion.
Coty who admitted it will pay $600 million for a 51% level of control in Kylie Cosmetics, said it’s working on launching more products under the Kylie brand and would sell them in more countries around the world.
The “Keeping Up with the Kardashians” reality show star, Jenner founded the cosmetic enterprise in 2015, strategically tapping into her hundreds of millions social media followers, the TV personality promoted and distributed her popular lip liners and liquid lipsticks beyond mere business models in a short period of time.
Kylie Jenner, 22, who is Kim Kardashian West’s youngest sister said she will still be the face of the brand and be involved in creating new products and businesses for the company, although will no longer be in control after the deal seals with Coty by January next year.
Peter Harf, Coty’s board chairman said, “Kylie is a modern-day icon,”
Coty is hoping that the celebrity-backed business will help boost its sales and connect with younger shoppers under 35, a group that conventional makeup names have struggled to reach. It’s obvious Coty’s will not think twice in grabbing the offer when his other brands including ”Max Factor makeup and Sally Hansen nail polish” have been around for decades without much.
Meanwhile, an analyst with Citi Research, Wendy Nicholson has pointed out that the partnership is like two edge sword, ”it can make Coty become a faster growth company” and it becomes risky as a brand attached to a celebrity name ”with the possibility of Jenner’s popularity fading off. ”
All of Kylie Jenner’s products were only sold online when they were launched at first, but last year the brand reached a limit to sell its goods in 1,100 Ulta Beauty stores.
A statement from Jenner shows she is very much excited getting into this deal: “I’m excited to partner with Coty to continue to reach even more fans of Kylie Cosmetics and Kylie Skin around the world.”
Coty to pay $600 million for a 51% stake in Kylie Cosmetics, as the cosmetics giant banks on the reality TV star’s more than 270 million social media followers to attract a younger audience https://t.co/S0CkXzHeGE pic.twitter.com/J3ObCsPDb2
— Reuters (@Reuters) November 19, 2019