Coty (NYSE:COTY) is buying 20% of Kim Kardashian West’s beauty line, KKW. The deal values the brand at $1 billion.
A lot of money, but less than the $1.2 billion value that Coty put on half-sister Kylie Jenner’s business. It bought a stake in that back in January.
Coty is partnering with brands endorsed by celebrities with huge social media followings. It hopes that will help sell its products to millennials who prefer less mainstream brands.
Kim launched KKW in 2017, two years after Kylie began her foray into business. Now a lot is riding on the deal for Coty. The owner of Rimmel and CoverGirl is saddled with billions of dollars of debt, and struggling with a turnaround.
It hopes to close the new deal in the third quarter of next year.
On Monday, Coty shares jumped over 8 percent in early trade.