Cosmetics giant Coty has completed the acquisition of a 20% ownership interest in Kim Kardashian West’s business for $200m.
The deal was agreed in June last year as part of Coty’s efforts to reinvigorate and modernise its product offering after weakening performance in recent years.
Coty and reality TV star Kardashian West stated that the tie-up will enable them to enter new beauty categories and expand globally beyond existing product lines. This will include the development of Kardashian West’s skincare line, which is on track to launch in the next year.
Sue Nabi, Chief Executive of Coty, said: “Kim shares our true passion for beauty products, and this acquisition allows us to leverage our respective strengths for mutual benefit and value creation. Coty brings unique IP in skincare, the scientific knowledge of the skin as reflected in our formulation know-how, while Kim brings a huge global following and unparalleled influence over consumer choice.”
While Kardashian West and her team will lead creative efforts relating to product and communications initiatives, Coty will have overall responsibility for the portfolio’s development.
Kardashian West said: “I’m so proud of how the KKW brand has grown over the past four years, and I look forward to working with Coty for the next phase of innovation, advancement, and the ability to bring new launches to customers all around the world.”
Last month, Coty completed of the sale of a majority stake in its Professional and Retail Hair business – including the Wella, Clairol, OPI and ghd brands (together ‘Wella’) – to private equity giant KKR. The deal was part of Coty’s drive to cut debt and simplify its structure.
Like other beauty firms, Coty has been hit hard by the pandemic, although figures towards to end of last year suggested demand for its products was recovering.
