Published 17:35 IST, November 19th 2019
Kylie Jenner, world's youngest billionaire, sells a 51% stake of her company
Kylie Jenner has taken the decision to sell a 51% stake to Coty, who is the owner of CoverGirl. This deal was made with Kylie Cosmetics for $600 million.
- World News
- 2 min read
The Instagram and make-up sensation Kylie Jenner is ready to sell a stake of her business of cosmetics. The star is selling the stake to the owner of CoverGirl, Coty. The deal will value the company Kylie Cosmetics at about $1.2 billion.
What the deal is about:
According to a report in a leading news portal, CoverGirl's owner Coty revealed that they would be paying $600m to the Kylie cosmetics company for a 51% stake. This deal is to be completed early next year, as is expected. The deal also includes the launch of a variety of new products under the brand of Kylie Cosmetics. The brand will also be aiming to increase its sales to more countries around the world.
Coty's chairman Peter Harf called Kylie Jenner a modern-day icon. Coty has also talked about the same, according to the report. Coty has high hopes that there will be a boost in sales as it is a celebrity-backed business. Coty also hopes to connect with all the young generation, specifically those who are under 35. According to Coty, it is a struggle to reach all this group for traditional makeup brands.
Coty has also been a part of other makeup brands like Max Factor makeup and Sally Hansen nail polish. The company backed this decision of the deal by talking about the achievements of Kylie Cosmetics. The company had brought in $177m in revenue in the last year.
Kylie, who started the company in 2015, will still be the face of the brand and will be a part of creating new products. Wendy Nicholson, a Citi Research analyst, claimed that while this deal will help in the growth of Coty's brand, it might take Jenner's personality on a downward slope. Kylie Jenner also talked about how excited she was to partner with Coty. She is happy that she could reach more fans of Kylie Cosmetics and Kylie Skin around the world.
Updated 18:59 IST, November 19th 2019