Coty Inc. a fragrance and cosmetic company recently announced that it will be purchasing a 51% stake in Kylie Jenner’s beauty business, including all her products of Kylie Cosmetics and Kylie Skin for $600 million. This deal currently values the business at nearly $1.2 billion confirming Kylie Jenner as a billionaire.
The transaction between Coty and Kylie Cosmetics is to be closed in the third quarter of 2020. While Kylie Jenner holds a lower per cent in her brand (41%) she is to remain as the creative lead on both product development and marketing initiatives, especially on social media, where she has 270 million followers across varying platforms.
Coty is the parent company of Covergirl and Sally Hansen and is now looking forward to appealing their brand to a younger demographic with this purchase said Pierre-André Terisse, the CEO of Coty. Coty will now be joining the ranks of social-media-friendly beauty lines along with its competitors Anastasia Beverly Hills and Glossier by joining forces with Kylie Cosmetics. This fusion helps Coty as Kylie Cosmetics is the second-most-followed brand on Instagram.
Kylie Jenner became the youngest self-made billionaire in March 2019 courtesy to her cosmetic brand which she founded in 2015 at the mere age of 18. While Kylie Jenner only invested the money she earned from modelling, the brand took off well due to her vast social media following. Her line of $29 lip kits which included a lip liner and lipstick quickly took off with almost no marketing costs and a minuscule overhead (Kylie Jenner only had seven full-time employees as of 2018).