Coty To Buy A 20% Stake In Kim Kardashian Cosmetics Company
Beauty products manufacturer Coty is going to buy 20% of the shares owned by model Kim Kardashian company KKW Beauty, which produces decorative cosmetics and perfumes, for $200 million, according to Financial Times.
According to the publication, the purchase will be another step to expand cooperation between the French-American manufacturer and the Kardashian family. In 2019, Coty acquired a 51% stake in Kylie Cosmetics, the company of Kim Kardashian's younger sister Kylie Jenner.
This time Coty was cautious, deciding to buy only a minority stake in KW Beauty, given the global recession caused by the coronavirus pandemic. According to one of the newspaper's sources, Coty has the opportunity to acquire a controlling stake in KKW subsequently.
The deal marks one of the attempts by jab Holding, the conglomerate that owns Coty, to boost the profitability of the company, whose shares have fallen 62% this year.