Global beauty company Coty has inked a long-term strategic partnership with American socialite Kylie Jenner to jointly build and further develop Jenner's existing beauty business which include brands Kylie Cosmetics and Kylie Skin. Under the terms of the agreement, Coty will acquire a 51% ownership of Kyle's two brands in the partnership for US$600 million. Among the list of brands under Coty include Burberry, Cover Girl, Hugo Boss, Wella, Lacoste and Max Factor.
Both parties aim to focus on global expansion and entry into new beauty categories. Through the partnership, each party will leverage its unique strengths to further build a high growth, digitally native beauty brand. Coty will have overall responsibility for the portfolio's development, leveraging its global knowledge and capabilities in R&D, manufacturing, distribution, commercial and go-to-market expertise, as well as its deep understanding of the fragrances, cosmetics and skincare categories. In addition to its responsibilities within the partnership, Coty will act as a licensee for skincare, fragrances, and nail products.
Jenner and her team, on the other hand, will continue to lead all creative efforts in terms of product and communications initiatives, building on her global reach capabilities through social media. According to Coty, the acquisition is expected to close in the third quarter of fiscal year 2020. All beauty categories within the new partnership will continue to be sold through luxury beauty retailers as well as owned digital channels.
Pierre Laubies, Coty chief executive officer said combining Jenner's creative vision and unparalleled consumer interest with Coty's expertise and leadership in prestige beauty products is an exciting next step in the company's transformation. He added that this will leverage Coty's core strengths around fragrances, cosmetics and skincare, allowing Jenner's brands to reach its full potential.
Meanwhile, Jenner said this partnership will allow her team and her to stay focused on the creation and development of each product while building the brand into an international beauty powerhouse.
Peter Harf, chairman of the Board, said: "This new partnership between Jenner and Coty is an exciting step in Coty's renewed emphasis on its beauty business. Jenner is a modern-day icon, with an incredible sense of the beauty consumer, and we believe in the high potential of building a global beauty brand together."