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Acquires a 20% stake in Kim Kardashian West’s business for $200 million.
January 5, 2021
By: Happi Staff
Coty Inc. has completed its acquisition of a 20% ownership interest in Kim Kardashian West's business for $200 million. The strategic transaction was announced in June 2020 and completed on schedule in Q3 fiscal year 2021. Together, Coty and Kardashian West will focus on entering new beauty categories and global expansion beyond existing product lines. This includes the development of her skincare line, which remains on track for an expected launch in fiscal year 2022. Leveraging Respective Strengths “Kim shares our true passion for beauty products, and this acquisition allows us to leverage our respective strengths for mutual benefit and value creation,” commented Sue Y. Nabi, chief executive officer of Coty. “Coty brings unique IP in skincare, the scientific knowledge of the skin as reflected in our formulation know-how, while Kim brings a huge global following and unparalleled influence over consumer choice.” Nabi continued, “She [Kim] has a unique ability to read the latest beauty and wellness trends, while we have the expertise on global product positioning, access to a vast global distribution network, and the resources to enter new beauty categories. I look forward to working closely with Kim and her team and I’m excited by everything we will achieve together.” Kardashian West and her team will lead the creative efforts relating to product and communications initiatives, building on her global reach capabilities through social media. Coty will have overall responsibility for the portfolio’s development (skincare, haircare, personal care and nail products), leveraging its deep understanding of the industry and its commercial and go-to-market expertise. Products will be sold through leading luxury beauty retailers, as well as owned digital channels. “I’m so proud of how the KKW brand has grown over the past four years, and I look forward to working with Coty for the next phase of innovation, advancement, and the ability to bring new launches to customers all around the world,” Kardashian West remarked.
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