The beauty company Coty announced this week that it will divest from its renowned international brand Wella, while reaching an agreement with the model and influencer Kylie Jenner to launch a new brand called Kylie Baby.
Coty will yield about 9% from Wella to the private equity fund KKR, in an exchange for about half of the latter firm’s shares in Coty.
The company will be left with around 30.6% owned by Wella (worth $ 1.38 trillion), after selling 60% of the hair care brand to KKR last December.
In return, KKR will redeem around 47 million common shares in Coty, in a transaction valued at about $ 426 million, and will be left with only 5.2% of the total package. The operation would also save Coty about $ 26 million in dividends, according to the company.
Alliance with Kylie
Along with all this, on September 28, Coty officially embarked on a new adventure in the hands of the media. Kylie Jenner, one of the famous Kardashian sisters.
Kylie Baby is the new children’s brand from Kylie Jenner, which will include four hair and skin care products – textured hair and curlers shampoo, conditioner, boys tear-free bubble bath and silicone-free moisturizing lotion – along with accessories and a gift set.
“This is something that I have been working on for three years and it has been very difficult to keep it a secret. I am very happy that I am finally here. When my daughter was born, I was working on the development of Kylie Skin and I started doing research on baby skin, hair care and product ingredients, because I wanted to make sure I was putting out safe, clean and friendly products. on their skin and hair, that they also follow the values of my brand ”, said the beauty entrepreneur.
It means that Kylie Skin is a product cruelty free, vegan, gluten, paraben or sulfate free.
“Bath time is always our special time together and my favorite part of the day, so it’s amazing for us now to have these products that she helped me create, to make that moment even more special. I am original of what I created for Stormi and for all of you to use on your babies, ”Jenner closed in a statement.
The first beauty brand of this businesswoman hit the market in 2015 and it was only for lip makeup kits. Since then she has built a beauty empire that spans all categories, in addition to skincare.
Investment in Technology
These announcements came just days after the multinational beauty company said it will expand its efforts aimed at the “multiverse” now that it has signed a new partnership with the omnichannel company. Perfect Corp.
Perfect Corp. is dedicated to providing specialized technology solutions in the health and beauty industry. Now, you will be in charge of designing and deploying the experiences of artificial intelligence (AI) and of augmented reality (AR) in the recognized brands of this company, which include CoverGirl, Sally Hansen, Rimmel London, among other.
Those technologies include but are not limited to virtual fitting rooms, online skin diagnostics, and data-driven personalization for beauty products.
They will be part of the marketing tools deployed by Coty both at the level of e-commerce as of experiences in the point of sale.
The objective, as detailed by the brands, is that a customer will be able to enter a live streaming session of the brand, discover -for example- a new lipstick shade, try it on online and go directly to buy it on the website, all during the same session and without leaving the transmission.
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Coty expands into AI and augmented reality
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