Kylie Jenner sells her cosmetics brand for $ 600 million

The success is not denied for Kylie Jenner.The American multinational of Coty beauty products announced on Monday that it was preparing to buy a 51 % participation of the young woman's company, which includes Kylie Cosmetics and Kylie Skin, for an amount of $ 600 million.The operation values the company up to $ 1.2 billion, confirming the status of billionaire by Kylie Jenner.

The transaction should be carried out in the third quarter of 2020. Kylie Jenner will then keep 49 % of the shares of Kylie Cosmetics and will remain in charge of creation in terms of product development and marketing, in particular on social networks, where it countsTotal 270 million followers.

Coty, the parent company of Covergirl and Sally Hansen, seeks to seduce a younger audience, said Pierre-André Terisse, Coty financial director, during a telephone call.Kylie Cosmetics is the second most followed brand on Instagram, which means that Coty will join the most present beauty ranges clan on social networks, such as Anastasia Beverly Hills and Glossier, which have become popular in recent years.

Kylie Jenner had declared to Forbes in 2018: "It is the power of social networks.I already had a great influence before I start anything. "

The young woman had become the youngest self -taught billionaire in March.She founded her cosmetics business in 2015, at the age of 18, with the money she earned as a model.Thanks to social networks, his collection of Lip Kits (composed of a lip pencil and a lipstick) makes a box.With very few general costs (last year, she still had only seven full -time employees) and almost no marketing cost (almost everything is done on her own social networks), the company is profitable from the start.

The years that follow, Kylie Jenner develops and launches palettes of eyelids and eyelids, among others.In August 2018, she signed an exclusive distribution contract with the American beauty chain Ulta, marking her first steps in mass distribution.

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According to information from Kylie Cometics, Forbes estimated the company's turnover at 360 million dollars in early 2018.But according to a coty statement published on Monday, Kylie Beauty in fact generated $ 177 million in the last 12 months (a figure which represents, according to a presentation to investors, a growth of 40 % compared to the calendar year2018).The company's margin of the company is greater than 25 %.

When Forbes interviewed Kylie Jenner last year, the young woman did not seem willing to sell her brand: "Maybe one day I will spend the torch in Stormi, if that interests him," she saidsubject of her daughter and adding that she was planning to work with Kylie Cosmetics "forever".

Coty hopes to be able to count on the influence of the young billionaire to develop Kylie Beauty internationally.Indeed, more than half of Kylie Jenner's followers are outside the United States, while the vast majority of sales of Kylie Beauty is across the Atlantic.Coty has manufacturing centers and distribution channels worldwide and will probably also work to develop the brand of Kylie Jenner in the perfume sector, an area where her sister, Kim Kardashian-West, has already taken a stand.Coty plans that, by 2023, its return on invested capital will exceed the purchase price of $ 600 million.

Pierre LAUBIES, CEO of COTY, said in a press release: "Associating the creative vision of Kylie and the interest of consumers with Coty expertise and leadership in prestigious beauty products is a fascinating new step in our transformationwhich will allow us to take advantage of our main assets in perfumes, cosmetics and skin care, allowing Kylie's brands to flourish fully ”.

Coty fait ainsi le pari que Kylie Cosmetics n’est pas simplement une mode, malgré la dépendance aux réseaux sociaux de sa fondatrice. L’entreprise souligne que plus de 50 % des ventes de produits de soins de la peau sont effectuées par des clients réguliers, et affirme que les ventes de produits de beauté sont tout aussi impressionnantes. Si le partenariat réussit, il s’agira d’une victoire précieuse pour Coty qui a vu ses actions chuter de plus de 50 % depuis l’acquisition d’un certain nombre de sociétés de cosmétiques et de parfums Procter & Gamble (dont CoverGirl et Clairol) en 2016.