Reality Star Turned Business Mogul Kylie Jenner Just Became $600 Million Richer Thanks to This Recently-Sealed Deal
It looks like 2019 is really a big year for reality star and businesswoman Kylie Jenner. Earlier in the year, she was declared by no other than Forbes as the ‘youngest self-made billionaire ever’ thanks to her successful makeup brand Kylie Cosmetics. And now, news has it that the 22-year-old has recently inked a massive deal with another giant in the cosmetics industry.
Selling More Than Half
According to sources, Jenner has just sold 51% of her eponymous company to Coty Inc. to the tune of $600 million in cash. The deal puts the value of her brand at about $1.2 billion leaving the young billionaire a remaining 49% stake worth about $588 million today. This also means that Jenner sold the controlling interests in her brand to the conglomerate.
The New York City-based firm is best known for owning other well-known beauty brands such as Wella, CoverGirl, Maxfactor, and Clairol. It can also be remembered that Coty expanded its holding by acquiring about a dozen brands from the consumer goods giant Procter & Gamble.
The deal clocked in at a whopping $12.5 billion when it was made back in 2016. The move has not been as profitable as expected it seems as brands like Kylie Cosmetics raked in the lion’s share of the beauty market at the time.
Joining the Fold
Some financial observers note that the deal comes after a rather bad year for Jenner’s company. Just last year, Kylie Cosmetics was rocked by an executive turnover and decreasing sales, which led its stock to decline massively. After news of the recent acquisition, stocks reportedly jumped up by 4%.
While based in the United States, Coty Inc. is primarily owned by the Luxembourg-based JAB Holding Company. The historically German conglomerate notably has large stakes in other well-known, non-beauty companies such as cafe-bakery chain Panera Bread, the luxury shoe brand Jimmy Choo, donut chain Krispy Kreme, and the brewing system company Keurig.
Kylie’s New Role
Although Jenner no longer owns the majority of her famous brand, she will now be tasked with leading all of Coty’s communications initiatives. Some financial observers interpreted this as Coty’s attempt to utilize the young star’s reported 270 million combined social media followers.
Meanwhile, the young influencer also expressed her excitement over the partnership as it allows her and her team to focus more on the creation of new products as they build the brand into an international one. Likewise, Coty CEO Pierre Laubies welcomed the collaboration expressed plans to get Jenner’s brands to reach their full potential.
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