Kim Kardashian West Enters Strategic Relationship With Coty to Expand Beauty Brands Globally
Los Angeles – June 29, 2020 – Cooley advised Kim Kardashian West on a $200 million long-term strategic transaction with Coty to further develop her business globally. Partners Dave Young and Matt Hallinan led the Cooley team advising Kardashian West on the transaction, which is expected to close in Q3 of Coty’s 2021 fiscal year.
Together, Coty and Kardashian West will focus on entering new beauty categories and global expansion beyond her existing product lines. Kardashian West and her team will lead all creative efforts in terms of product and communications initiatives, building on her remarkable global reach capabilities through social media.
Under the terms of the agreement, Coty, one of the world’s largest beauty companies, will acquire a 20% ownership interest of Kardashian West’s beauty business. Coty will have overall responsibility for the portfolio’s development, leveraging its deep understanding of fragrances, cosmetics and skincare categories and its commercial and go-to-market expertise. Additionally, Coty will act as a licensee for skincare, haircare, personal care and nail products. Through the relationship, each party will leverage its unique strengths to further build a high-growth, direct-to-consumer beauty brand.
“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 Kardashian West in a statement. “I look forward to continuing to drive the creative direction behind each collection, from the products and packaging, as well as any potential partnerships that we explore going forward. This partnership 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.”
Cooley previously advised Kardashian West’s half-sister Kylie Jenner on a $600 million partnership with Coty, whereby Coty acquired a 51% stake in Kylie Cosmetics and Kylie Skin.
Kardashian West is one of the world's most influential people on social media, with a combined following of almost 275 million users and counting. Her reality series “Keeping Up With the Kardashians,” on which she holds an executive producer credit, is E Network’s highest-rated show. Since its launch in June 2017, KKW Beauty has introduced collections revolutionizing the direct-to-consumer model by selling out multiple launches. In November of the same year, Kardashian West launched KKW Fragrance and continues to produce sell-out collections.
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