Kim Kardashian Sells 20% Stake of KKW Beauty to Coty for $200 Million
The star's cosmetics and fragrance brand is now valued at $1 billion
Kim Kardashian West's beauty business is officially a billion-dollar empire.
On Monday morning, beauty conglomerate Coty announced it had reached a deal with Kardashian West, 39, to acquire a 20% stake in KKW Beauty for $200 million, valuing the star's cosmetics and fragrance business at $1 billion. Forbes reports that the sale makes Kardashian West's net worth an estimated $900 million.
According to the official release, Coty will help Kardashian West expand the brand into more categories including skincare, haircare, personal care and nail products while also bringing the items into more global markets. Kardashian West and her team will continue to lead all creative efforts of product and communications initiatives, especially through her massive reach on social media (the star has 242.5 million followers and counting on Twitter and Instagram combined).
"Partnering with an established organization like Coty will be instrumental in the advancement of my brands as their global reach allows for faster expansion so people around the world are able to experience new launches first hand," Kardashian West said in the release.
"This relationship will allow me to focus on the creative elements that I’m so passionate about while benefiting from the incredible resources of Coty, and launching my products around the world," she continued.
Coty's Chairman and Chief Executive Officer Peter Harf believes the acquisition, which is scheduled to close in the third quarter of fiscal year 2021, will help KKW Beauty reach its full potential.
“Kim is a true modern day global icon. She is a visionary, an entrepreneur, a mother, a philanthropist, and through social media has an unparalleled ability to connect with people around the world," Hard said. "This influence, combined with Coty’s leadership and deep expertise in prestige beauty will allow us to achieve the full potential of her brands.”
While there have been reports about prestige cosmetics sales declining in 2019, Kardashian West said her own companies, KKW Beauty and KKW Fragrance, were doing better than ever in an interview with WWD last November.
“I’m very active during sales and launches,” the mom of four said. "We’ve doubled in a year. It just makes me proud of the brand and makes me want to push to do exactly what I want to do and continue to make the products that I love and stay true to the authentic collaboration.”
Kardashian West follows in sister Kylie Jenner's footsteps, who sold a 51% majority stake of Kylie Cosmetics to Coty for $600 million in November 2019. The sale valued Jenner's company at almost $1.2 billion and according to Forbes, left her with a net worth of just under $900 million.