Monday announced a “strategic relationship” in which it paid $ 200 million for a 20% interest in the reality-TV star Kim Kardashian West beauty business, KKW Beauty. Under the terms of the agreement, Coty will be responsible for the “development portfolio” in the skin care, hair care, personal care and nail products, and Kardashian West will “lead all creative efforts in terms of products and communication initiatives.”
Coty announced earlier this month that it was in talks with Kardashian West about a possible collaboration. The case comes less than a week after her husband Kanye West and Gap Inc.
Wells Fargo analyst Joe Lachky said he did not expect the agreement to have a material impact on Coty’s financial short-term, given the low participation, but he said that he could become “more material” over time, as it includes a licensing agreement that puts Coty in charge of the expansion of the brand outside of the cosmetic and the perfume.
soared 13.4% to $4.74. He lost 57.9% year to date, while the S&P 500 index
has declined by 5.5%.
During this time, the language in Coty release Monday, was similar to that used in the investments the company has closed six months ago with Kim, a young half-sister, Kylie Jenner.
In January, Coty said that it has closed on the “strategic partnership” announced in November 2019, in which Coty said it has paid $ 600 million for a 51% interest in Kylie and the beauty of the business, Kylie Cosmetics.
This implies a $ 1.18 billion valuation for Kylie Cosmetics.
Not to be missed: Coty of $ 600 million to deal with Kylie Jenner is designed to cling to his social media star power.
At the time, Coty said that it would be responsible of the “portfolio development”, while Jenner will “lead all creative efforts in terms of products and communication initiatives.”
There is a not too subtle difference, however, in the language Coty used to describe the sisters.
Monday, Coty has said about Kim:
“Karadashian West is one of the world’s most recognized personalities with 300 million fans through its brand of social media channels, as well as be a voice of influence between beauty consumers to a global scale,” Coty said in a press release.
In November, Coty had to say about Kylie:
“Kylie is one of the world’s most admired personalities with more than 270 million fans through its brand of social media channels, as well as being one of the most influential voices among beauty consumers to a global scale.”
Apparently, being admired is worth much more than to be recognized.