Kylie Jenner just became $600 million richer, TMZ reports.
Jenner will sell the majority stake of her Kylie Cosmetics company to Coty Inc. Coty is behind established beauty brands like CoverGirl, MaxFactor, and Clairol. It values Jenner's brand at $1.2 billion and is willing to pay $600 million for 51 percent of Kylie Cosmetics. Per a statement released by Jenner, Kylie will remain the public face of the brand. She and her team will also continue to shape the product creations while Coty will be in charge of marketing the company on a global scale.
"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," the statement reads.
Coty is looking to revive the company through Jenner's profitable brand. According to the Wall Street Journal, Coty has lost half its value since 2016. Just this year, the company took $4 billion in write-downs. But, Kylie Cosmetics is on track to make $200 million this year and is the epitome of brands capitalizing on their celebrity founders. Coty finance chief Pierre-André Terisse believes that this where "the growth" of the cosmetic market lies which is why Jenner's brand interested the company.
Kylie created her cosmetics brand in 2015. In 2018, Kylie Cosmetics partnered with Ulta Beauty Inc. to start carrying the makeup in more than 1,100 stores. Jenner's company was mostly known for nude lip liners and lipsticks. Yet, this year Kylie Cosmetics added a skin-care line to their products which opened its market to new consumers.
