Coty has gained a sizable foothold in the Kardashian empire.
Beauty company Coty announced today that they’ve officially partnered up with Kim Kardashian West, purchasing a 20% stake in her personal cosmetics line, KKW Beauty. Coty bought the stake for $200 million, but it places KKW’s overall value in the ballpark of $1 billion. Needless to say, they’ve got some big plans in mind.
“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,” Coty chairman and chief executive, Peter Harf 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.”
Under the agreement with Coty, Kim will maintain general creative control of KKW, which will allow her to effectively broadcast to her scores of social media followers and friends and utilize her impressive star power.
“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,” Kim said.
Interestingly, this new deal actually marks Coty’s second dealing with the Kardashian family, as back in January they purchased a controlling stake in Kylie Jenner’s personal makeup brand to the tune of $600 million. While they spent more for her brand, Coty actually values Kylie’s line at around $1.2 billion, a few notches more than her half sister.
With the two stars’ cooperation, as well as other major brands like CoverGirl and Max Factor, Coty is poised to become a major deciding force in the beauty industry at large.