The beauty product and fragrance group agreed to acquire a 20% stake in KKW Beauty. The deal also reportedly gives Coty the option to acquire a majority stake. Coty had already closed the acquisition of a 51% stake in Kylie Cosmetics, Kardashian West’s half-sister Kylie Jenner’s brand.
In the case of KKW, the investment came with a commercial partnership where the company’s current team will retain control of production strategy and communications, while Coty will oversee product development.
Launched in 2017, KKW develops and commercialises skincare and make-up products. The celebrity’s brand also markets fragrances via a subsidiary, KKW Fragrance, and has begun producing shape-enhancing undergarments under its Skims brand.
The deal forms part of the broader beauty and hygiene space which has been on the radar of corporate venture investors. Over the past five years, we have tracked at least 20 corporate-backed rounds a year in this space. The evolution of the total estimated capital suggests valuations in this space have been rising, though the sub-sector has not seen many unicorns.
