Kim Kardashian West Sells a $200 Million Stake of Her Beauty Brand to Coty Inc.
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Kim Kardashian West Sells a $200 Million Stake of Her Beauty Brand to Coty Inc.
The deal will allow her to expand KKW Beauty into new categories including skincare, haircare, and nail products.
UPDATE 1/5/2021 at 10:40 a.m.: Coty Inc. has officially closed its deal with Kim Kardashian West. The global beauty conglomerate now owns 20% of KKW Beauty and Kardashian West is $200 million richer.
In a statement following the announcement Kardashian 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. This relationship will allow me to lead the development of the creative elements that I specialize in, while benefiting from the incredible resources of an established company like Coty."
Under this new partnership, Kardashian West will focus on the creative efforts of her brand, while Coty will work on expanding into new categories, developing skincare, haircare, personal care and nail products.
"Kim shares our true passion for beauty products, and this acquisition allows us to leverage our respective strengths for mutual benefit and value creation,” said Coty chief executive officer Sue Nabi said in a statement. "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. She has a unique ability to read the latest beauty and wellness trends, while we have the expertise on global product positioning, access to a vast global distribution network, and the resources to enter new beauty categories. I look forward to working closely with Kim and her team and I’m excited by everything we will achieve together.”
Coty Inc. just took its relationship with the Kardashian/Jenners to the next level.
On Monday, June 29, the cosmetics conglomerate acquired a 20% stake in Kim Kardashian West's KKW Beauty, a deal that cost a cool $200 million.
Under the licensing agreement, Kardashian West and Coty will partner to expand KKW Beauty into new categories including skincare, haircare, personal care, and nail products, and help grow the brand internationally.
“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," Peter Harf, Coty Chairman and Chief Executive Officer said in a statement. "This influence, combined with Coty’s leadership and deep expertise in prestige beauty will allow us to achieve the full potential of her brands.”
RELATED: Kylie Jenner Sold Most of Kylie Cosmetics
Coty paid $600 million for a 51 percent stake in Kylie Jenner's Kylie Cosmetics brand in November 2019. WWD reported the potential deal with Kardashian West's KKW Beauty earlier this month. Ahead of the tentative deal, Seed Beauty, the manufacturer that the star used to launch her beauty brand filed a lawsuit to prevent KKW Beauty from sharing trade secrets with Coty.
Expect even more KKW Beauty product drops after the Coty deal closes in 2021.
