Beauty mogul, Kim Kardashian West is known as a trailblazer in the beauty and fashion industry. So it was no surprise when Coty approached the star to sell part of her beauty brand, KKW Beauty.
The $200 million dollar deal which was first announced in June of 2020 was finalized on Tuesday. According to Forbes, the reality star’s company launched in 2017 is estimated to be worth $1 billion dollars.
Coty Spends Millions in Another Kardashian-Jenner Brand Deal With Kim Kardashian
Coty Inc. is an American beauty conglomerate in charge of popular brands like Covergirl and Calvin Klein. Company CEO, Sue Y. Nabi, praised the star saying, “Kim shares our true passion for beauty products, and this acquisition allows us to leverage our respective strengths for mutual benefit and value creation,”
According to a press release by the beauty entrepreneur she said “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,”
The Keeping Up With The Kardashians star is set to retain full creative control of the products and communication initiatives while Coty will manage the production aspect of her brand. She remains the majority stakeholder with 72% ownership of KKW Beauty.
Kim Kardashian, however, isn’t the first from the Kardashian clan to work with the popular beauty company. In 2019 Kylie Jenner, her half-sister sold 51% of her companies, Kylie Cosmetics and Kylie Skin, to Coty Inc. for $600 million. Thanks to this deal, the 23-year-old’s net worth jumped to $900 million cementing her billionaire status.
The Future is Bright For KKW Beauty!
Coty Inc. has plans to promote KKW Beauty in global markets for better sales due to the star’s huge social media following. On Instagram alone, she has over 189 million followers and 300 million across all her social media channels.
“She 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,” Coty’s CEO added in her statement.
When KKW Beauty launched, the products included lip gloss, perfumes and a range of foundations. Now with the help of Coty, the beauty brand will be able to branch into hair care, personal care and nail products.
The beauty page has a massive following of over 4 million Instagram followers, who were quick to react to the news. Some fans of the Kardashians took to Twitter saying, “Go Kimmy! Such an inspirational family”. “Making money moves!”
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