Kylie Jenner is worth even more money now! The youngest self-made billionaire has just announced that she has sold the majority stake of her signature cosmetics line to Coty Inc. for a whopping $600 million. Coty announced the 'strategic partnership' in a press release yesterday.
Jenner started her beauty business in 2015 and quickly became one of the industry's biggest players. At just 22 years old she has now sold 51% of her Kylie Cosmetics business to Coty, which also owns such iconic beauty brands as CoverGirl, Clairol, Rimmel London, and Sally Hansen, just to name a few.
Jenner is not abandoning her namesake product line simply because she sold the majority share in the company. In a press release, she states that by partnering with Coty her team will be better able to focus on creating new products for her customers. “I’m excited to partner with Coty to continue to reach even more fans of Kylie Cosmetics and Kylie Skin around the world. 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," Jenner said. "This partnership will allow me and my team to stay focused on the creation and development of each product while building the brand into an international beauty powerhouse.”
Coty seems equally thrilled to be partnering with such a high profile personality like Jenner. “We are pleased to welcome Kylie into our organization and family," noted Pierre Laubies, Coty Chief Executive Officer. "Combining Kylie’s creative vision and unparalleled consumer interest with Coty’s expertise and leadership in prestige beauty products is an exciting next step in our transformation and will leverage our core strengths around fragrances, cosmetics, and skincare, allowing Kylie’s brands to reach their full potential.”
The company's Chief Financial Officer Pierre-André Terisse noted in a conference call that the partnership is a win-win for everyone involved. “We don’t see any weaknesses. We see strength everywhere. We see strength in cosmetics. We see strength in skincare both digitally and in the launch in Ulta,” he said.
Terrise also noted that Jenner's recent launch of her skincare line, Kylie Skin was hugely successful and indicates that the brand is only going to continue to grow. “The skincare is pretty early days but there is more than 50 percent repeat purchase among skincare customers,” Terisse noted. “We’ve not seen any sign that this will not be a sustainable beauty brand. The fact that she has been able to move from cosmetics to skincare and get such success is already proof that there is something.”
Linda Bolton Weiser, an analyst at D.A. Davidson told CNBC that buying a brand based on a person's name and persona can be risky. “Some people would argue that names and brands based on people are weaker brands over the very long term,” Bolton Weiser noted. “Sometimes the brand can’t outlive the person.”
For now, Jenner's brand is incredibly strong and it doesn't show any signs of slowing down.