Beauty product and fragrance group Coty agreed on Monday to pay $200m for a 20% stake in KKW Beauty, the beauty brand formed by celebrity Kim Kardashian West.
Founded in 2017, KKW produces make-up and skincare products in addition to lipsticks and lip liners. It also sells fragrances through subsidiary KKW Fragrance and has begun producing shape-enhancing undergarments under the Skims brand.
The investment comes in the form of a commercial partnership whereby Kardashian West’s team will retain control of production strategy and communications while Coty will oversee development of KKW’s skincare, personal care, haircare and nail product ranges.
Kardashian West said: “Partnering with an established organisation like Coty will be instrumental in the advancement of my brands as their global reach allows for faster expansion so people around the world are able to experience new launches first-hand.
“This relationship will allow me to focus on the creative elements that I am so passionate about while benefitting from the incredible resources of Coty and launching my products around the world.”
The deal gives Coty the option to acquire a majority stake in KKW, people familiar with the transaction told the Financial Times. It had already closed the acquisition of a 51% stake in Kylie Cosmetics, the brand formed by Kardashian West’s half sister Kylie Jenner, in January this year.
However, Seed Beauty, the company that manufactures products for Kylie Cosmetics, sued both the company and Coty yesterday, alleging it had shared Seed’s trade secrets with Coty, the owner of dozens of brands including Calvin Klein, Gucci, Hugo Boss, Max Factor and Rimmel.
Image courtesy of KKW Beauty.
