Coty Inc. and Kim Kardashian West announced that they have entered into a strategic transaction to further develop Kardashian West’s business globally.
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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 all creative efforts in terms of product and communications initiatives, building on her remarkable global reach capabilities through social media.
The transaction is another step in Coty’s renewed emphasis on its beauty business and ongoing transformation into a more agile, focused company. Kardashian West is one of the world’s most recognized personalities with 300 million followers across her personal and brand social media channels, as well as being an influential voice among beauty consumers globally. In January, Coty acquired a 51% stake in Kardashian West’s half-sister Kylie Jenner’s brands.
Under the terms of the agreement, Coty will acquire a 20% ownership interest in Kardashian West’s beauty business for $200M. Coty will have overall responsibility for the portfolio’s development in skincare, haircare, personal care and nail products, leveraging its deep understanding of the industry and its commercial and go-to-market expertise. Through the relationship each party will leverage its unique strengths to further build a high growth, direct-to-consumer beauty brand.
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 acquisition is expected to close in the third quarter of FY21. All the business’s products will be sold through leading luxury beauty retailers as well as owned digital channels.
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Tiger Chark served as an advisor to Coty on the transaction.