Cape Town – In a press statement on Tuesday, Coty announced that they had acquired 51% ownership of Kylie Jenner’s beauty business for $600 million (around R8.9 billion).
"Coty Inc. (NYSE:COTY) and Kylie Jenner announced today that they have entered into a long-term strategic partnership in order to jointly build and further develop Kylie’s existing beauty business into a global powerhouse brand. Together, Coty and Kylie will set and lead the strategic direction of the partnership, focusing on global expansion and entry into new beauty categories," the beauty company behind CoverGirl, ghd and the Calvin Klein and Gucci fragrances said.
As per the press release, Kylie and her team will "continue to lead all creative efforts in terms of product and communications initiatives, building on her unrivalled global reach capabilities through social media" while Coty will have "overall responsibility for the portfolio’s development, leveraging its global knowledge and capabilities in R&D, manufacturing, distribution, commercial and go-to-market expertise, as well as its deep understanding of the fragrances, cosmetics and skincare categories".
Coty will also act as a licensee for skincare, fragrances, and nail products for the brand.
Kylie made the reason for the big business move clear. "I’m excited to partner with Coty to continue to reach even more fans of Kylie Cosmetics and Kylie Skin around the world," she said. "I look forward to continuing the creativity and ingenuity for each collection that consumers have come to expect and engaging with my fans across social media. This partnership will allow me and my team to stay focused on the creation and development of each product while building the brand into an international beauty powerhouse."
A bold but unsurprising move for Forbes' youngest self-made billionaire.
(Photo: Getty Images)