Coty executives are set to acquire a 20 percent stake in Kim Kardashian's beauty line.
Executives at the US beauty giant, which also owns brands such as Clairol, Max Factor, OPI, Rimmel, and Wella, announced on Monday that they have signed a deal to develop Kim's KKW Beauty business globally.
As part of the agreement, both parties will focus on "entering new beauty categories and global expansion beyond her existing product lines".
"Partnering with an established organization like Coty will be instrumental in the advancement of my brands as their global reach allows for faster expansion so people around the world are able to experience new launches first hand," said Kim in a statement.
"This relationship will allow me to focus on the creative elements that I'm so passionate about while benefiting from the incredible resources of Coty, and launching my products around the world."
As part of the deal, Coty will acquire a 20 percent ownership interest in the beauty business for US$200 million. Coty will have overall responsibility for the portfolio's development in skincare, haircare, personal care and nail products, while Kim and her team will lead creative efforts in terms of product and communications initiatives.
"Kim is a true modern day global icon. She is a visionary, an entrepreneur, a mother, a philanthropist, and through social media has an unparalleled ability to connect with people around the world", added Peter Harf, Coty Chairman and Chief Executive Officer.
"This influence, combined with Coty's leadership and deep expertise in prestige beauty will allow us to achieve the full potential of her brands."
The deal between Coty and Kim, who launched KKW Beauty in 2017, was rumoured earlier this month. It comes months after Coty acquired a 51 percent stake in Kim's half-sister Kylie Jenner's beauty brands.
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