Kim Kardashian sold some of the cosmetic brand for $ 200 million

Manufacturer of cosmetic products Coty plans to buy 20% stake in the company, Kim Kardashian West KKW Beauty. The company produces cosmetics and perfumes. The amount of the transaction amounted to $200 million: thus, the whole company Kardashian is estimated at $1 billion.

the Transaction should be completed early next year. Kim Kardashian will remain the majority shareholder with a share of 72%. However, according to sources of the newspaper Financial Times, the Coty has the opportunity afterwards to acquire a controlling stake in KKW. No details on sales or profits KKW were not disclosed.

According to Forbes, the mother of Kim Kardashian, Kris Jenner, owns 8% of business. According to representatives of Coty, she will remain responsible for the creative strategy, while Coty will focus on expanding product development outside the sphere of decorative cosmetics.

At the beginning of this year’s half-sister Kim Kylie Jenner — have also concluded a large deal with Coty, sold 51% of its cosmetics company Cosmetics Kylie for $ 1.2 billion.

“Kim is a true icon in the modern world”, — said in his statement, the Chairman of the Board of Directors and CEO of Coty Harf Peter (Peter Harf). “Her influence combined with managerial skills Coty and deep knowledge of beauty industry will enable us to fully unleash the potential of the brand”.

the Parties intend to expand the product line and presence in world markets. Coty will take over the product development company in the field of skin care, hair, body and nails.

on Monday, shares of Coty jumped 12.4 percent to $ 4.70 in the previous auction in new York.

seek cooperation with another large star of the social networks, Coty is attempting to modernize its own portfolio as well as companies, which includes popular brands CoverGirl and Max Factor.

Coty is also planning to take on armamentstion model for direct online sales, paired with aggressive marketing in Instagram. This approach has been tried a number of new cosmetic brands that have challenged the industry leaders L’oréal and Estée Lauder. The emphasis is on a younger audience that prefers niche brands, actively promoted by opinion leaders in social networks.