Coty Inc. has signed a licensing deal with Kim Kardashian West and is paying $200 million for a 20 percent stake in her existing beauty business, which consists of color cosmetics and fragrance.
The licensing agreement covers categories that Kardashian West hasn’t yet entered, including skin care, which will be the initial focus, personal-care products, hair care and nail.
The deal values the three-year-old company at $1bn, slightly less than the $1.2bn valuation Coty put on Ms Kardashian West’s younger sister Kylie Jenner’s business when it bought a 51 per cent stake last year.
While a partnership between Coty and Kardashian West isn’t a surprise –the scope of the deal is smaller than the one that Coty inked with Kardashian-West’s sister, Kylie Jenner, last November. In that deal, Coty bought a 51 percent stake in Kylie Cosmetics for $600 million.
Harf noted the company has no plans for additional deals now that this one is finalized. The company now have to execute and realize the immense potential of Kim and Kylie.
The deal shows that fashion and beauty companies still see the Kardashian family, who rose to fame in 2007 with their reality TV show, as having the power to confer glamour on their often fading brands.