Coty To Acquire 20% Ownership Interest In Kim Kardashian West's Beauty Business For $200 Mln

(RTTNews) - Coty Inc. (COTY) and Kim Kardashian West announced Monday that they have entered into a strategic transaction to further develop Kardashian West's business globally. Together, Coty and Kardashian West will focus on entering new beauty categories and global expansion beyond her existing product lines.

Under the terms of the agreement, Coty will acquire a 20% ownership interest in Kardashian West's beauty business for $200 million. Coty will have overall responsibility for the portfolio's development in skincare, haircare, personal care and nail products, leveraging its deep understanding of the industry and its commercial and go-to-market expertise.

The acquisition is expected to close in the third quarter of fiscal 2021. All the business's products will be sold through leading luxury beauty retailers as well as owned digital channels.

Kardashian West and her team will lead all creative efforts in terms of product and communications initiatives, building on her remarkable global reach capabilities through social media.

The transaction is another step in Coty's renewed emphasis on its beauty business and ongoing transformation into a more agile, focused company. In January, Coty acquired a 51% stake in Kardashian West's half-sister Kylie Jenner's brands.