After much speculation, Coty and Kylie Jenner have come to an agreement.
The beauty company announced that it has entered into a long-term strategic partnership with Jenner in order to expand her Kylie Cosmetics and Kylie Skin businesses.
“We are pleased to welcome Kylie into our organization and family,” Pierre Laubies, Coty’s chief executive officer, said. “Combining Kylie’s creative vision and unparalleled consumer interest with Coty’s expertise and leadership in prestige beauty products is an exciting next step in our transformation and will leverage our core strengths around fragrances, cosmetics and skin care, allowing Kylie’s brands to reach their full potential.”
Under the terms of the agreement, Coty will acquire a 51% ownership in the partnership for $600 million, and expects the transaction to accretive to the net revenue growth of its core fragrance, cosmetics and skin care portfolio by more than 1% p.a. over the next three years, the company said.
“I’m excited to partner with Coty to continue to reach even more fans of Kylie Cosmetics and Kylie Skin around the world. I look forward to continuing the creativity and ingenuity for each collection that consumers have come to expect and engaging with my fans across social media,” Kylie Jenner said. “This partnership will allow me and my team to stay focused on the creation and development of each product while building the brand into an international beauty powerhouse.”
In addition, the beauty company will have the overall responsibility for the portfolio’s development, and act as a licensee for skin care, fragrances and nail products.
“This new partnership between Kylie and Coty is an exciting step in Coty’s renewed emphasis on its beauty business,” Peter Harf, chairman of the board, said. “Kylie is a modern-day icon, with an incredible sense of the beauty consumer, and we believe in the high potential of building a global beauty brand together.”
The acquisition is expected to close in the third quarter of the fiscal year 2020, and all beauty categories within the new partnership will continue to be sold through leading luxury retailers, as well as owned digital channels, the company said.