THE WHAT? Coty and Kylie Jenner have announced that they have entered into a long-term strategic partnership to jointly build and further develop Kylie’s existing beauty business into a global powerhouse brand.
THE DETAILS Coty will acquire a 51 percent stake in the partnership for US$600 million. The deal is expected to complete in the third quarter of fiscal 2020. Under the deal, Coty will act as a licensee for skin care, fragrances and nail products as well work with Kylie to set the strategic direction of the partnership, focusing on global expansion and entry into new beauty categories.
Pierre Laubies, Coty Chief Executive Officer, said, “We are pleased to welcome Kylie into our organization and family. Combining Kylie’s creative vision and unparalleled consumer interest with Coty’s expertise and leadership in prestige beauty products is an exciting next step in our transformation and will leverage our core strengths around fragrances, cosmetics and skin care, allowing Kylie’s brands to reach their full potential.”
Kylie Jenner commented, “I’m excited to partner with Coty to continue to reach even more fans of Kylie Cosmetics and Kylie Skin around the world. 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. This partnership will allow me and my team to stay focused on the creation and development of each product while building the brand into an international beauty powerhouse.”
Peter Harf, Chairman of the Board, said, “This new partnership between Kylie and Coty is an exciting step in Coty’s renewed emphasis on its beauty business. Kylie is a modern-day icon, with an incredible sense of the beauty consumer, and we believe in the high potential of building a global beauty brand together.”
THE WHY? With 270 million followers across her personal and brand social media channels, Kylie Jenner’s influence is considerable while her two brands, Kylie Cosmetics and Kylie Skin are two of the fastest-growing and most-engaged beauty brands on social media. She’ll bring her comms and creative expertise to the table while Coty will deal with the manufacturing, distribution and commercial side.