Coty to pay $200m for 20% of Kim Kardashian West's beauty line
Cosmetics company has already completed a $600m deal to acquire a majority stake in a skincare line owned by sister Kylie Jenner
Coty agreed to buy a 20 per cent stake in Kim Kardashian West’s beauty business for $200 million (Dh734.5m) to develop skin, hair and nail products under the reality TV star’s brand.
Coty said on Monday it expects the acquisition to complete in the third quarter, and that all products will be sold through luxury beauty retailers as well as online.
The company's shares were 17 per cent higher at $4.90 in pre-market trading in the US. The company's stock had fallen 63 per cent this year as of the end of last week.
The partnership comes just months after Coty closed a $600m deal with Ms Kardashian West’s sister, Kylie Jenner.
The tie-up would further entwine Coty in the Kardashian web of reality shows and social media, tying the beauty company’s prospects more tightly to the family’s ability to appeal to consumers.
News of the deal comes after Seed Beauty, Ms Kardashian West’s partner for her beauty line, won a court order temporarily blocking the reality TV star from sharing trade secrets in their agreement as she pursued the stake sale. Seed Beauty, which typically partners with celebrities to develop cosmetics and manufactures the products, said Coty would gain an “unfair competitive advantage”.
Ms Kardashian West and Ms Jenner are not the only members of the family pursuing tie-ups with large brands. On Friday, Gap announced a deal with Ms Kardashian West’s husband, rapper Kanye West, for a new line of apparel for men, women and kids called Yeezy Gap.
Updated: June 29, 2020 05:27 PM