Coty unveils 600 million dollars deal with Kylie Jenner’s beauty businesses | Progresiv
Coty Inc has announced another major acquisition in the beauty category, this time picking up a majority stake in reality TV star Kylie Jenner’s businesses. 
The deal will see Coty acquire a 51% stake in the business for 600 million dollars, valuing the latter at more than 1.2 billion dollars, as it looks to “jointly build and further develop Kylie’s existing beauty business into a global powerhouse brand.” Launched in 2015, Kylie Cosmetics and Kylie Skin offer make-up and skincare products. Kylie Cosmetics generated 177 million dollars in net revenues over the past year.
The deal will see Coty take overall responsibility for the portfolio’s development, while also acting as a licensee for skincare, fragrances, and nail products. Meanwhile, Kylie and her team will continue to lead all creative efforts in terms of product and communications initiatives, tapping into the more than 270 million followers on social media channels.
Coty said the deal is expected to add to the net revenue growth of its core fragrance, cosmetics and skin care portfolio by more than 1%. over the next three years. The deal is also is expected to be neutral to earnings per share in the first year, and accretive thereafter. It added that the ROIC of the transaction is expected to exceed Coty’s cost of capital by fiscal 2023. (www.kamcity.com)
