Kylie Jenner is selling the majority stake of her cosmetics line #KylieCosmetics for $600 million.
The 22-year-old reality star is selling 51 percent stake in Kylie Cosmetics to beauty company Coty, the New York-based cosmetics company that owns several international beauty brands, including CoverGirl. According to CNN Business, the partnership will help Jenner’s brand expand globally and enter two beauty categories, the companies said in a press release on Monday.
“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,” Jenner said, who will stay on as the brand’s creative leader. Jenner’s team will handle Jenner’s communication and creative plans.
According to Coty, Kylie Cosmetics has generated roughly $177 million in revenue over the past year. The deal is expected to close in the third quarter of 2020, CNN reports. Coty said the transaction is a “key milestone” for the company. Coty announced a $600 million turnaround plan in June that includes layoffs and streamlining its products and brands. The company also announced a $3 billion write-down in value of brands it acquired in 2015 from Procter & Gamble (PG), which included CoverGirl and Clairol.
Coty CEO Pierre Laubies said in the release that the deal is “an exciting next step in our transformation and will leverage our core strengths around fragrances, cosmetics, and skincare, allowing Kylie’s brands to reach their full potential.”