Kim Kardashian’s beauty line valued at $1 billion as Max Factor-owner Coty snaps up a 20% stake
Max Factor-owner Coty has snapped up a 20 per cent stake in Kim Kardashian West’s beauty line KKW for £162million.
The deal values the reality TV star’s company at £809million.
Turnover at the company, which Kardashian West set up in 2017, topped £81million in 2018.
Kim Kardashian West, pictured (left) with sister Kylie Jenner, has sold a 20 per cent stake of her beauty line KKW to Max Factor-owner Coty for £162m
The 39-year-old and her family shot to fame in 2007 with the launch of the phenomenally successful reality TV show Keeping Up With The Kardashians.
Her younger sister Kylie Jenner (pictured right with Kardashian West) is also a make-up entrepreneur.
Coty bought a 51 per cent share of Kylie Cosmetics last year for £485million, valuing the company slightly higher than Kardashian West’s at £970million.
KKW sells everything from mascara to lipstick as well as bundles of make-up that can cost £260.
Coty’s willingness to buy a stake in another company set up by the Kardashian brood comes as its major investor JAB Holdings is trying to turn around the unprofitable cosmetics giant.
Shares in the group, which also owns at-home hair dye brand Clairol and Rimmel London, have fallen by nearly two-thirds this year.
Coty is hoping Kardashian West’s social media clout – she has 177m followers on Instagram – will help keep KKW’s sales buoyant.
Although Coty has bought a minority stake in KKW now, it has the ability to buy more at a later date, sources told the Financial Times.
KKW’s latest sales and profit figures were not disclosed.
Earlier this week, Kardashian West’s rapper husband Kanye West announced his clothing line Yeezy is collaborating with Gap on a collection that will be on sale next year.