Kim Kardashian West is most likely popping a bottle of Jay Z’s Armand de Brignac Champagne today. Why? The reality TV star turned makeup mogul just is selling a 20% share of her KKW Beauty empire to beauty giant, Coty, for a whopping $US200 million (roughly $AUD291.5 million). See, fancy champagne is definitely in order.
The sale values Kardashian West’s three-year-old business at $US1 billion, with The Wall Street Journal reporting that Coty Inc. is buying a fifth of Kim Kardashian West’s makeup brand, KKW Holdings LLC, and is set to be completed early next year.
Coty, who owns brands like Covergirl, Max Factor, ghd and OPI, is a dab hand when it comes to beauty, and seemingly already a fan of the Kardashian / Jenner clan. News of the KKW Beauty acquisition comes after a massive deal last year with Kardashian West’s little sister and fellow beauty entrepreneur, Kylie Jenner, with Coty buying a 51 per cent stake in her makeup line, Kylie Cosmetics.
“Kim is a true modern day global icon,” gushed Coty CEO, Peter Harf. He’s right, a global icon with a huge reach: 177 million followers on her personal Instagram channel and 4.4 million on KKW Beauty, Kardashian West is one of the most powerful and influential people on social media (only little sister Kylie challenges her for the throne). Along with a planned KKW Beauty expansion (which will potentially span categories like skin and haircare), Coty will clearly try to leverage the reality star’s reach to boost the company’s existing direct-to-consumer beauty brands, hoping to boost sales and connect with younger shoppers who spend a lot of time on social media.
Kim Kardashian West will still be the face of the brand and continue to promote it online and develop product. It’s been a big week for the Kardashian West family, with husband Kanye West just signing a new 100-year deal with Gap over the weekend. Bottles will no doubt be poppin’.