THE WHAT? Coty and Kim Kardashian West have announced that they have entered into a strategic transaction to further develop Kardashian West’s beauty business, KKW Beauty, globally. To that end, Coty has purchased a 20 percent stake in the brand for US$200 million.
THE DETAILS 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 creative efforts in terms of product and communications initiatives.
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 WHY? The transaction is described as ‘another step in Coty’s renewed emphasis on its beauty business and ongoing transformation into a more agile, focused company’.