Coty Inc. has closed its $200 million deal with Kim Kardashian’s KKW Beauty for a 20 percent stake in the company. The deal will help KKW Beauty expand into skincare and other categories in the fiscal year 2022.
“Kim shares our true passion for beauty products, and this acquisition allows us to leverage our respective strengths for mutual benefit and value creation,” said Coty chief executive officer Sue Nabi.
“She has a unique ability to read the latest beauty and wellness trends, while we have the expertise on global product positioning, access to a vast global distribution network, and the resources to enter new beauty categories.”
Kardashian West is expected to lead creative efforts around product development and communications and promotion, whereas Coty will focus on the formulation of the products and helping the beauty brand expand into new categories.
Coty’s deal with Kardashian West, which was first announced in June last year, is much in line with another such deal Coty struck with her step-sister Kylie Jenner. The company bought a 51 percent stake in Jenner’s cosmetics business Kylie Cosmetics for $600 million in November 2019. Since then, Coty has expanded Kylie Skin in Europe and has worked on making it more accessible across key global markets online.
The company’s dealings with the Kardashian-Jenner family are part of its effort to turn around the business by doubling down on its direct-to-consumer sales, WWD reported. The company had struggled to keep its operation profitable since it acquired a portfolio of 41 beauty brands from CPG giant Procter & Gamble in 2016. Under Nabi’s leadership, however, the company seems to be stabilizing through her efforts to streamline its business. Nabi joined Coty in September of last year.