Kylie Jenner is selling a majority stake of her popular cosmetics line for $600 million, but she’s staying on as its creative leader.
The celebrity businesswoman will sell 51% of her stake in Kylie Cosmetics to Coty Inc (COTY)., a New York-based cosmetics company that also owns a number of international consumer beauty brands, including CoverGirl. The partnership will help Kylie’s brand expand globally and enter new beauty categories, the two companies said in a press release Monday.
“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,” Jenner said.
Jenner’s team will continue to handle her creative and communication efforts, which is notable because she’s one of the most-followed people on social media. She has 150 million followers on Instagram and 30 million Twitter (TWTR) followers.
The cosmetics brand has generated roughly $177 million in revenue over the past year, according to Coty. The deal is expected to close in the third quarter of 2020.
Coty said the transaction is a “key milestone” for the company. It announced a $600 million turnaround plan in June that includes layoffs and streamlining its products and brands. The company also announced a $3 billion write down in value of brands it acquired in 2015 from Procter & Gamble (PG), which included CoverGirl and Clairol.
Coty CEO Pierre Laubies said in the release that the deal 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.”
Coty’s stock has rallied 90% this year and jumped 4% in early Monday trading. The deal also helps the company future proof itself as younger shoppers are increasingly buying direct-to-consumer brands, like Glossier.