Coty buys 20% of KKW Beauty’s shares for $200 million
In a commercial agreement concluded on Tuesday 5 January, Kim Kardashian sold 20% of the shares of his company KKW Beauty to Coty, for the modest sum of 200 million dollars.
The cosmetics giant had already planned to integrate the famous Kim brand in June 2020. The objective of this new partnership is to integrate and develop new categories, notably skin care, which is scheduled to be launched in 2022.
“Kim shares our true passion for beauty products, and this acquisition allows us to leverage our respective strengths for mutual benefit and value creation” Coty CEO Sue Nabi told WWD.
Coty will therefore have overall responsibility for the development of the portfolio, including skin, hair, personal care and nail care. Kim Kardashian and her team will continue her conquest of social media thanks to her notoriety and will therefore lead the creative side in terms of communication.
“Coty brings a unique intellectual property in skin care, the scientific knowledge of the skin as reflected in our formulation know-how, while Kim brings enormous global reach and unparalleled influence on consumer choice. She has a unique ability to read the latest trends in beauty and wellness, while we have the expertise in global product positioning, access to a vast global distribution network and the resources to enter new beauty categories” continues the CEO.
Note that in 2019, Coty had already acquired 51% of Kylie Cosmetics from Kylie Jenner for $600 million. This sale took place just before the brand expanded into the skin care market, so history seems to be repeating itself with Kim Kardashian. Kim Kardashian expressed her enthusiasm for the collaboration in a press release.
“I am so proud of the way the KKW brand has grown over the past four years and look forward to working with Coty on the next phase of innovation and advancement with the ability to launch new products around the world. This collaboration will allow me to lead the development of creative elements, which is my specialty, while benefiting from the incredible resources of a well-established company like Coty”.
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