WATCH: Kim Kardashian reaches billionaire status thanks to $200m Coty deal
London - Max Factor-owner Coty has snapped up a 20 percent stake in Kim Kardashian West’s beauty line KKW for $200-million
The deal values the reality TV star’s company at $1-billion.
Turnover at the company, which Kardashian West set up in 2017, topped £81m in 2018.
The 39-year-old and her family shot to fame in 2007 with the launch of the phenomenally successful reality TV show "Keeping Up With The Kardashians".
Her younger sister Kylie Jenner is also a make-up entrepreneur. Coty bought a 51 percent share of Kylie Cosmetics last year for £485m, valuing the company slightly higher than Kardashian West’s at £970m.
I am so proud of my beautiful wife Kim Kardashian West for officially becoming a billionaire— ye (@kanyewest) June 30, 2020
You’ve weathered the craziest storms and now God is shining on you and our family
So blessed this is still life
So I made you this still life
We love you so much pic.twitter.com/Vvtgzodnah
KKW sells everything from mascara to lipstick as well as bundles of make-up that can cost £260 (about R5 500).
Coty’s willingness to buy a stake in another company set up by the Kardashian brood comes as its major investor JAB Holdings is trying to turn around the unprofitable cosmetics giant.
Shares in the group, which also owns at-home hair dye brand Clairol and Rimmel London, have fallen by nearly two-thirds this year. Coty is hoping Kardashian West’s social media clout – she has 177m followers on Instagram – will help keep KKW’s sales buoyant.
Although Coty has bought a minority stake in KKW now, it has the ability to buy more at a later date, sources told the Financial Times.
KKW’s latest sales and profit figures were not disclosed.
Earlier this week, Kardashian West’s rapper husband Kanye West announced his clothing line Yeezy is collaborating with Gap on a collection that will be on sale next year.Daily Mail