Beauty company Coty (NYSE: COTY) announced Monday morning it is taking a majority stake in Kylie Cosmetics.
And if the name of latter company sounds familiar, it should.
The deal gives Coty a 51% stake in the makeup company for $600 million. Kylie Jenner — the 22-year-old founder of the makeup company and member of the Kardashian-Jenner family — and her team will continue to lead the company’s creative efforts related to products and communications.
Together, Coty and Kylie will set and lead the strategic direction of the partnership, focusing on global expansion and entry into new beauty categories.
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.
Kylie is one of the world’s most admired personalities with over 270 million followers across her personal and brand social media channels, as well as being one of the most influential voices among beauty consumers globally. Both of her brands, Kylie Cosmetics and Kylie Skin, are two of the fastest-growing and most-engaged beauty brands on social media.
"We are pleased to welcome Kylie into our organization and family," said Coty CEO Pierre Laubies. “Combining Kylie’s creative vision and unparalleled consumer interest with Coty’s expertise and leadership in prestige beauty products is an exciting next step in our transformation and will leverage our core strengths around fragrances, cosmetics and skincare, allowing Kylie’s brands to reach their full potential."
Coty shares climbed 11.5 cents, or nearly 1%, by noon ET Monday, to a price of $12.03.
