The Strategist

The youngest self-made billionaire to sell her company

11/19/2019 - 08:50

Kylie Jenner, the youngest self-made billionaire on Forbes list, will sell a controlling stake in her cosmetics company Kylie Cosmetics for $ 600 million. The buyer is Coty Corporation, which produces cosmetics under the Max Factor brand.

Mike Mozart via flickr
Mike Mozart via flickr
Coty Inc will pay $ 600 million for 51% of Kylie Cosmetics, a cosmetics company owned by model Kylie Jenner, a joint press release reads. The parties plan to close the deal in the third quarter of fiscal year 2020. After that, the company will be renamed Kylie Beauty. Jenner will remain the face of the brand.

In the message, Coty notes the popularity of the model, who has more than 270 million subscribers in social networks. The brands it owns - Kylie Cosmetics and Kylie Skin - are the fastest growing and most attractive among those betting on social networks, the report said. The corporation expects that as a result of the transaction, the group’s net profit will grow by more than 1% per year over the next three years.

“Coty will have a comprehensive responsibility for developing the portfolio, using its knowledge and capabilities in research and development, production and distribution, as well as a deep understanding of the categories of aromas, cosmetics and skin care products. Coty will also act as a licensee for cosmetics,” the corporation said.

In March, Jenner, 21, became the youngest billionaire in history to make a fortune on her own. According to the Forbes Real-Time rating, updated in real time, her wealth on Monday was estimated at exactly $ 1 billion. 

Jenner launched Kylie Cosmetics back in late 2015. The first batch of cosmetics was sold out in 30 seconds. The path to the Forbes list was paved with a contract with Ulta chain of stores in which Jenner sold cosmetics for $ 55 million in six weeks.

Coty is controlled by European investment firm JAB Ltd and is in the process of restructuring, writes The Wall Street Journal. Last year, the corporation sold $ 8.6 billion, the newspaper said. Its main brands are CoverGirl and Max Factor.