Beauty mogul Kylie Jenner has officially sold a majority stake in her company, Kylie Cosmetics, to global beauty giant Coty for a cool $600 million.
22-year-old Kylie has maintained full ownership of Kylie Cosmetics since it was launched in 2015, but now she has made the decision to sell a majority stake in an effort to take the brand global.
It was announced that fragrance and cosmetic conglomerate Coty Inc. is purchasing a 51 percent stake in Kylie’s beauty business, which includes Kylie Cosmetics and Kylie Skin. With a sale price of $600 million, that values the business at almost $1.2 billion. It also confirms Kylie Jenner’s billionaire status.
The deal hasn’t closed yet but is expected to be done in the third quarter of 2020.
Kylie will still be around, though, as she will be keeping the other 49 percent stake. It is being reported that the beauty mogul will stay on as the creative lead, with her and her team continuing to lead all product development and marketing initiatives.
Kylie released a statement saying that she is hoping that the deal will help her “reach even more fans of Kylie Cosmetics and Kylie Skin around the world.” She also adds, “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.”
Coty is a big name in the beauty industry, as the company already owns around 80 other beauty brands. Those subsidiaries include well-known brands across both consumer and professional markets, such as Rimmel, Wella, Covergirl, Sally Hansen, and OPI.
The big beauty company is hoping to use its existing global presence to expand Kylie’s business internationally and allow “Kylie’s brands to reach their full potential,” according to Pierre Laubies, Coty’s chief executive officer.
As of now, over half of Kylie’s social media followers are outside the U.S., so there is certainly plenty of room to expand.
Kylie can certainly thank internet service for a good portion of her success. She founded the company in 2015 at the age of 18. It was thanks to her social media following (which meant almost no marketing costs) and her minuscule overhead that her business has been profitable from the start.