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Kylie Jenner sells $600M stake in her beauty business

Kylie Jenner attends the 2018 MTV Video Music Awards at Radio City Music Hall on Aug. 20, 2018 in New York City. Jeff Kravitz/FilmMagic

Kylie Jenner is selling a majority stake in her beauty business to Coty, a New York-based cosmetics company that owns many international brands including CoverGirl, Gucci and Tiffany & Co.

Coty said Monday that it will pay $600 million for a 51 per cent stake in Kylie Cosmetics and plans to launch more products under the Kylie brand and sell them in more countries around the world.

Jenner will still remain the public face of the brand and will be involved in creating new products.

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“I’m excited to partner with Coty to continue to reach even more fans of Kylie Cosmetics and Kylie Skin around the world,” Jenner said in Coty’s press release.

“I look forward to continuing the creativity and ingenuity for each collection that consumers have come to expect and engaging with my fans across social media. 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.”

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The deal is expected to be completed early next year.

Click to play video: 'Critics roast Kylie Jenner’s new walnut-based face scrub'
Critics roast Kylie Jenner’s new walnut-based face scrub

The 22-year-old beauty mogul founded Kylie Cosmetics in 2015, and it brought in about $177 million in revenue in the last year, up 40 per cent from the year before.

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Jenner’s products were only sold online when it was first launched, but last year, the brand struck a deal to sell its goods in 1,100 Ulta Beauty stores. Jenner expanded her empire earlier this year with Kylie Skin, a line of moisturizers, under-eye creams and facial scrubs.

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“Kylie is a modern-day icon,” said Peter Harf, Coty’s board chairman.

“Combining Kylie’s creative vision and unparalleled consumer interest with Coty’s expertise and leadership in prestige beauty products 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,” said Coty CEO Pierre Laubies.

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Jenner was named the youngest-ever self-made billionaire by Forbes magazine in March.

Click to play video: 'Kylie Jenner named youngest self-made billionaire by Forbes'
Kylie Jenner named youngest self-made billionaire by Forbes

Forbes estimated that Jenner’s Kylie Cosmetics is worth at least US$900 million. She hits the billion-dollar mark when you add in cash she has already pulled from the profitable business, the magazine said.

READ MORE: Kylie Jenner named youngest self-made billionaire by Forbes

Jenner told Forbes the milestone is a “nice pat on the back.”

“I didn’t expect anything. I did not foresee the future,” Jenner, who is the youngest billionaire in the world, told Forbes. “But [the recognition] feels really good.
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“I see [Kylie Cosmetics] going very far,” she said. “I work really hard.”

—With files from the Associated Press

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