The youngest billionaire in history sells a controlling stake in the company for $ 600 million
'19.11.2019'
Source: Forbes
Kylie Jenner, the youngest self-made billionaire on the list Forbes, will sell a controlling stake in its cosmetics company Kylie Cosmetics for $ 600 million. The buyer is Coty Corporation, which produces cosmetics under the Max Factor brand.
Coty Inc will pay $ 600 million for 51% of Kylie Cosmetics, a cosmetics company owned by Kylie Jenner, said in a joint press release. The parties plan to close the deal in the third quarter of the 2020 financial year. After that, the company will be renamed Kylie Beauty. Jenner will remain the face of the brand.
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Coty in the message notes the popularity of the model, which is subscribed by more than 270 million people in social networks. The brands it owns - Kylie Cosmetics and Kylie Skin - are the fastest growing and most attractive among those betting on social networks, the report said. The corporation expects that as a result of the transaction, the group’s net profit will grow by more than 1% per year over the next three years.
“Coty will have a comprehensive responsibility for developing the portfolio, using its knowledge and capabilities in research and development, production and distribution, as well as a deep understanding of the categories of aromas, cosmetics and skin care products. Coty will also act as a licensee for cosmetics, ”the corporation said.
In March, 21-year-old Jenner became the youngest billionaire in history to make a fortune on her own. According to the Forbes Real-Time rating, updated in real time, her condition on Monday was estimated at exactly $ 1 billion. Kylie Jenner is the younger sister of Kim Kardashian, model and wife of rapper Kanye West, as well as the heroine of the American reality show “The Kardashian Family ".
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Jenner launched Kylie Cosmetics at the end of the 2015 year. The first batch of cosmetics was sold out in 30 seconds. The path to the Forbes list was paved with a contract with a Ulta chain of stores in which Jenner sold cosmetics for $ 55 million in six weeks.
Coty is controlled by European investment firm JAB Ltd and is in the process of restructuring, writes The Wall Street Journal. Last year, the corporation sold $ 8,6 billion, the newspaper said. Its main brands are CoverGirl and Max Factor.
