Kim Kardashian West’s make-up brand KKW is set to be valued at $1 billion after cosmetics maker Coty reportedly agreed to buy a 20% stake.
Coty, whose make-up labels include CoverGirl and MaxFactor, also bought a 51% stake in younger sister Kylie Jenner's business last year.
The latest collaboration with the celebrity family comes as Coty's majority shareholder, JAB Holdings, attempts to boost the group's fortunes following a 62% fall in shares this year.
The Financial Times reported that Coty will have the option to acquire a majority stake in KKW. No details on KKW's sales or profits have been disclosed, the paper added.
The deal highlights the continued marketing power of the Kardashian family following their rise to fame in a 2007 TV reality show. Kardashian West has 178 million followers on Instagram, and Jenner 183 million.
Last week Kanye West, who is married to Kim, signed a major 10-year clothing deal with high street retailer Gap for his clothing line Yeezy. Kanye already has a premium Yeezy fashion line, while his Adidas YEEZY trainers retail for around £400 and regularly sell out online.
The deal is expected to give the ailing high street brand a major boost, with Gap hoping the collection will generate $1 billion in annual sales in 5 years
Aside from Coty, JAB’s portfolio also includes Pret A Manger and Panera Bread as well as controlling stakes in publicly traded Keurig Dr Pepper and JDE Peet’s. The group was founded to manage the wealth of Germany’s billionaire Reimann family, but also raises funds from outside investors.