(CBS News) – Beauty company Coty is buying a 51% stake in Kylie Jenner’s cosmetics business for $600 million. The deal, which values the young entrepreneur’s namesake beauty brand at $1.2 billion, will enable “global expansion and entry into new beauty categories,” the companies said in announcing the deal on Monday.
Jenner, whom Forbes has described as the youngest “self-made billionaire,” will remain the face of both of her brands, Kylie Cosmetics and Kylie Skin. The 22-year old has become one of the most influential celebrities, amassing more than 270 million followers on social media. The youngest member of the Kardashian clan founded the company in 2015, when she was still a teenager.
“I’m excited to partner with Coty to continue to reach even more fans of Kylie Cosmetics and Kylie Skin around the world,” Jenner said in a statement. “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 said it will use its research and development, manufacturing, distribution and commercial resources to expand Jenner’s business.
“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,” Coty CEO Pierre Laubies said a statement.
Publicly traded Coty Inc. is one of the world’s leading beauty companies, with roughly $9 billion in net revenue. Its portfolio of brands includes mainstream, luxury and professional beauty brands like Covergirl, Burberry fragrances, Marc Jacobs Fragrances and more.
Coty’s stock price rose about 1% Monday, to around $12 a share, on the news of the Jenner acquisition.
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