Coty Inc., the global beauty conglomerate that in 2019 bought a 51% stake in Kylie Jenner’s cosmetics company, has just made another member of her family a billionaire.
According to TMZ, the company has signed a $200 million deal with Kim Kardashian for a 20% stake in KKW Beauty, meaning Coty has valued the reality star’s cosmetics brand at $1 billion.
Sources told the outlet that this is intended to be a long-term strategic partnership, with Coty acting as a licensee for skin, hair, personal, and nail products. They said the plan is to launch products in new categories while also pursuing global expansion.
The deal reportedly won’t close until the third quarter of 2021, however, as KKW Beauty is currently being sued by Seed Beauty. The company, which manufactures KKW’s products, is asking for an injunction blocking the makeup brand from revealing its trade secrets and business practices to Coty.
Coty is the same company that previously purchased a 51% stake in Kylie Cosmetics for $600 million, leading Forbes to name Jenner the “youngest self-made billionaire ever.” But the magazine recently retracted that moniker after claiming financial filings released by Coty revealed that “Kylie’s business is significantly smaller, and less profitable, than the family has spent years leading the cosmetics industry and media outlets, including Forbes, to believe.”
The magazine now estimates her net worth to be around $900 million. In response to the recension, Jenner tweeted, “I can name a list of 100 things more important right now than fixating on how much money I have.”
Hopefully Coty did a little more due diligence this time before forking over yet another huge paycheck to the famous family.
A Coty representative did not respond to request for comment.
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