Coty invests $600 mln in Kylie Jenner's beauty brands
Coty is going all in on Kylie Jenner.
The youngest sibling of the Kardashian-Jenner clan, on Monday, struck a deal worth $600 million with cosmetic giant Coty, giving the company a majority stake in her make-up and skincare businesses.
Coty will hold 51% of Jenner's business, valuing her company at about $1.2 billion.
Coty’s strategy: to tap into the reality TV star's huge social media reach.
Kylie has amassed a staggering 151 million followers on Instagram along with an additional 29.3 million on Twitter.
News of the deal sent Coty shares up as much as 5%.
Launched back in 2015, Kylie’s makeup line, which includes lipstick and lip liner kits, quickly became a hit, selling out within minutes of launching.
Coty, which currently owns about 40 beauty brands, including CoverGirl and Max Factor is currently in the middle of a four-year restructuring plan, spending more on marketing to combat falling sales
In a statement, Jenner said of the deal: "I look forward to continuing the creativity and ingenuity for each collection that consumers have come to expect and engaging with my fans across social media."
The deal is expected to close in the third quarter of fiscal year 2020.
