Coty Inc. (NYSE: COTY) and Kim Kardashian West announced today that they have entered into a strategic transaction to further develop Kardashian West’s business globally. Together, Coty and Kardashian West will focus on entering new beauty categories and global expansion beyond her existing product lines. Kardashian West and her team will lead all creative efforts in terms of product and communications initiatives, building on her remarkable global reach capabilities through social media.
The transaction is another step in Coty’s renewed emphasis on its beauty business and ongoing transformation into a more agile, focused company. Kardashian West is one of the world’s most recognized personalities with 300 million followers across her personal and brand social media channels, as well as being an influential voice among beauty consumers globally. In January, Coty acquired a 51% stake in Kardashian West’s half-sister Kylie Jenner’s brands.
Under the terms of the agreement, Coty will acquire a 20% ownership interest in Kardashian West's beauty business for $200M. Coty will have overall responsibility for the portfolio’s development in skincare, haircare, personal care and nail products, leveraging its deep understanding of the industry and its commercial and go-to-market expertise. Through the relationship each party will leverage its unique strengths to further build a high growth, direct-to-consumer beauty brand.
Peter Harf, Coty Chairman and Chief Executive Officer, added, “Kim is a true modern day global icon. 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 FY21. All the business's products will be sold through leading luxury beauty retailers as well as owned digital channels.
Tiger Chark served as an advisor to Coty on the transaction.
About Coty Inc.
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. Coty and its brands are committed to a range of social causes as well as seeking to minimize its impact on the environment.
About Kim Kardashian West
Kim Kardashian West is one of the world's most-influential people on social media with a combined following of 300 million users and counting. An entrepreneur, beauty mogul, producer and author, she first burst onto the scene in 2007 after the premiere of her hit E! Entertainment reality series “Keeping Up with the Kardashians” where Kardashian West also holds an executive producer credit. Now filming its nineteenth season, the show has been recognized as the highest rated show on the E! Network.
Through her work with industry makeup artists, Kardashian West developed a love and understanding for makeup artistry, and launched her eponymous cosmetics line, KKW Beauty in June of 2017. Since inception, KKW Beauty has introduced collections revolutionizing the direct to consumer model by selling out multiple launches. In November of the same year, Kardashian West launched KKW Fragrance and continues to produce sell out collections. In October 2019, KKW Beauty entered Ulta Beauty as the exclusive retailer in the US.
Last year, Kardashian West launched her highly anticipated solutionwear collection, SKIMS, as new approach to shape enhancing undergarments which sold out in the first few minutes of launch.
Kardashian West has been passionate about the fight for criminal justice reform and has been studying for a law degree through the apprenticeship program in the state of California. She is expected to take the bar in 2022. She is also a supporter of numerous charitable organizations including the Children’s Hospital Los Angeles, the Dream Foundation, disaster relief efforts including the recent Covid-19 pandemic and donating to organizations focused on making change and fighting radical injustice.
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Originally posted on Modern Salon