NEW YORK (dpa-AFX) – The US cosmetics group Coty teams up with reality TV star Kim Kardashian West. The company, which is majority controlled by the German billionaire Reimann family, announced on Monday in New York that it would acquire 20 percent of West’s make-up company KKW Beauty. Coty is investing $ 200 million (€ 177 million), and NPP is valued at $ 1 billion in the deal. This means that Kardashian West has to be content with a little less than her half-sister Kylie Jenner, whose company Coty had estimated at $ 1.2 billion when she started in January.
The partnership on the stock exchange created a good mood on Monday, Coty’s shares rose temporarily in New York trading by around 15 percent. Cooperations with celebrities are currently very popular with US companies. It was only on Friday that the fashion brand Gap announced a deal with Kardashian West’s husband, the rap star Kanye West, and was also celebrated by investors on the stock exchange. However, the market euphoria cannot hide the fact that both Gap and Coty are actually deeply in crisis.
Coty, which is part of the JAB empire of the Reimann clan, is struggling with weak sales and red numbers. Most recently, the billionaires’ family sent the chief strategist of their investment holding company, Peter Harf, to lead the group out of the crisis. Coty has been undergoing a profound renovation for years, the unsuccessful takeover of various cosmetic brands by the consumer goods giant Procter & Gamble (ProcterGamble) in 2016 had a massive impact. There was also a lot of criticism for the investment at Kylie Jenner’s company, because $ 600 million was not perceived as a bargain for 51 percent of the company./hbr/DP/fba
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