Kim Kardashian West Becomes A Billionaire As Coty Buys Stake In KKW Cosmetics
Cosmetics giant Coty Inc. is set to buy a 20% stake in Kim Kardashian West’s beauty line, KKW. Coty made the announcement on Monday and valued Kardashian West’s brand at $1 billion which is a little lower than the $1.2 billion that West’s younger sister Kylie Jenner’s beauty line was valued at by Coty when it took majority stake.
Part of the deal includes Coty developing a skincare routine, haircare, personal care and nail products for KKW and is set to close in the third quarter of fiscal 2021.
West had launched KKW in 2017, just two years after her sister Jenner had made a successful entrance into the beauty industry. Chairman and two-time Chief Executive Officer of Coty Peter Hart played an influential role in the development of Jenner’s business.
Coty has been revamping its brand as it has recently faced billion of dollars of debt. The corporation is focusing on partnering with celebrities and social media started businesses in order to target millennials, who tend to be drawn towards more niche brands. Coty had previously explained that it expected the demand for social media-based businesses to grow.
Last month, Coty had bought out firm KKR & Co Inc for $3 billion by offloading a majority of its stake in its hair and nail care business during the shutdown of salons due to the coronavirus pandemic.
On June 18, West posted about some of her new makeup on Instagram. She wrote, “I did a makeup look using the new @kkwbeauty Classic II Eyeshadow Palette. Shop the palette on its own or in a bundle with the original Classic Palette in TWO DAYS on Saturday, 06.20 at 12PM PDT at KKWBEAUTY.COM,” and included a video of her using the product.
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