Kylie Jenner unloads $600M stake in beauty company
Kylie Jenner is selling a controlling stake in her cosmetics startup to Coty Inc. for $600 million.
Coty shares rallied on the news.
The deal for 51 percent of Kylie Cosmetics values the company at $1.2 billion. Jenner will remain the face of the company, which will be rebranded as Kylie Beauty. The brand is known for its lip liners and lipsticks.
“We are pleased to welcome Kylie into our organization and family,” Coty CEO Pierre Laubies said in a press release announcing the deal. “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.”
Jenner said in the press release that she looks forward to "building the brand into an international beauty powerhouse.”
Coty says the acquisition will be accretive to the net revenue growth of its core fragrance, cosmetics and skincare portfolio by more than 1 percent over the next three years, and to earnings per share after year one.
The deal is expected to close in the third quarter of Coty's fiscal year 2020.
READ MORE ON FOX BUSINESS BY CLICKING HERE
Coty shares have gained 81.6 percent year-to-date while the S&P 500 is up 24.5 percent.