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Kylie Jenner sells 51% ($600m) majority stake in her cosmetics brand

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Kylie Jenner sells 51% ($600m) majority stake in her cosmetics brand

Kylie Jenner is selling a $600 million majority stake in her cosmetics brand to beauty product giant Coty Inc.

Coty announced on Monday it was buying a 51 percent stake in Jenner’s make-up and skincare businesses as it looks to tap into the reality TV star’s huge social media reach.

The cosmetics company will now have overall responsibility for Jenner’s brand, while the 22-year-old star and her team will continue to lead creative efforts and communications.

The move comes as the cosmetics maker – whose brands include Hugo Boss and Burberry fragrances, as well as Covergirl, Rimmel and Max Factor – doubles down on its skincare and fragrance products.

Also read: Kim, Kourtney, Khloe Kardashian, and Kylie Jenner join forces as they promote SKIMS Solutionwear

Coty has been rolling out new luxury fragrances and lipsticks while spending more on marketing to combat falling sales.

The announcement drove shares in the company up 5 percent.

Jenner, the youngest sibling of the Kardashian family, started her make up line with lipstick kits in 2015.

The kits sold out within minutes of launching, an early sign of the power of her now 270 million-plus social media following.

In a statement, Jenner said: ‘I’m excited to partner with Coty to continue to reach even more fans of Kylie Cosmetics and Kylie Skin around the world.

‘I look forward to continuing the creativity and ingenuity for each collection that consumers have come to expect and engaging with my fans across social media.

‘This partnership will allow me and my team to stay focused on the creation and development of each product while building the brand into an international beauty powerhouse.’

Coty said Kylie Cosmetics has had an estimated $177 million in net revenues over the past 12 months.

Jenner brought in sales of an estimated $360 million in 2018, according to Forbes, putting her on its list of self-made billionaires.

Kylie Cosmetics also last year signed a deal with Ulta Beauty Inc to put her products in all of the retailer’s 1,163 U.S. stores.

Coty said the new partnership will increase its net revenue growth of its core fragrance, cosmetics and skin care business by more than 1 percent per year over the next three years.

‘We are pleased to welcome Kylie into our organization and family,’ Pierre Laubies, Coty CEO, said.

‘Combining Kylie’s creative vision and unparalleled consumer interest with Coty’s expertise and leadership in prestige beauty products is an exciting next step in our transformation and will leverage our core strengths around fragrances, cosmetics and skincare, allowing Kylie’s brands to reach their full potential.’

The deal is expected to close in the third quarter of fiscal year 2020, according to the company.

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