Coty Inc, a major player in the cosmetics industry, has announced its plans to acquire a 20% stake in Kim Kardashian West’s makeup brand, KKW, for a whopping $200 million. This move is reminiscent of Coty’s previous acquisition of a majority stake in Kylie Jenner’s cosmetics line earlier this year.

Valued at $1 billion, KKW’s price tag falls slightly short of Kylie Jenner’s business, which was valued at $1.2 billion. Nevertheless, this investment marks a significant step for Kim Kardashian West’s venture into the beauty world, having launched her makeup line in 2017, following in the footsteps of her sister’s astounding success.

Coty’s decision to invest in KKW comes at a critical time for the company, as it grapples with mounting debt and declining sales. To overcome these financial challenges, Coty recently sold off a majority stake in its hair and nail care business for a hefty $3 billion to buyout firm KKR & Co Inc.

In an effort to breathe new life into its business and achieve stability, Coty has reinstated Peter Harf, their former CEO, to lead the company once again. This strategic move aims to guide the company through the current economic downturn and pave the way for growth.

The acquisition of KKW is expected to be finalized in the third quarter of fiscal 2021. This investment not only exemplifies Coty’s confidence in the future success of Kim Kardashian West’s brand but also solidifies their position in the fiercely competitive beauty industry.

For further information on Coty Inc’s acquisition of KKW, you can visit:
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