Cosmetics giant is betting on yet another Kardashian – E24

The company is investing $ 200 million, equivalent to nearly NOK 2 billion, in Kim Kardashian West’s three-year-old beauty company KKW, the company said in a press release.

KKW, which sells everything from eye shadow to lipsticks, was valued at one billion dollars (NOK 9.7 billion) in the agreement. The company is scheduled to expand the brand, where it is planned, among other things, that skin care will be included in the portfolio.

Coty is an American beauty company that develops, manufactures, markets and distributes over 70 beauty brands. These include Balenciaga, Burberry, Marc Jacobs, Wella and Dolce & Gabbana.

Lower ownership

This is not the first time Coty is investing in the Kardashian clan. In November last year, the company bought into little sister Kylie Jenner’s beauty empire for NOK 5.5 billion, and became the main shareholder with a 51 per cent stake.

According to the Financial Times, the corona pandemic is the reason the cosmetics giant did not go heavier on its owner side in KKW.

The newspaper further writes that Coty has secured the opportunity to become the largest owner of the make-up brand at a later date.

The transaction is expected to be completed within the first three months of 2021.

Focus on celebrities

At the end of March, the cosmetics giant put in $ 8.15 billion in debt, trying to modernize its portfolio, including collaborating with celebrities with well-known brands and large followers on social media.

– Kim is a true modern global icon. She is a visionary, an entrepreneur, a mother, a philanthropist, and through social media has a unique ability to connect with people around the world. This influence, combined with Coty’s leadership and expertise, will reach the full potential of her brands, says Coty Peter Harf, CEO of Coty.

Kim Kardashian West has 177 million followers on Instagram, while little sister Kylie Jenner has 182 million followers. In addition, their cosmetics companies have a total of around 30 million followers.

The news of the investment was welcomed on Wall Street on Monday, and around 7 p.m., the Coty stock has risen 12.8 percent, and is now trading for $ 4.72.

Read the full press release here