Kim Kardashian's KKW cosmetics line is worth $1.4 billion after securing deal with Coty

Coty is doubling down on the Kardashians.

After buying Kylie Jenner's beauty business last January, Coty announced on Monday that it would acquire a 20 per cent stake in KKW, Kim Kardashian's cosmetics line, for US$200 million (approx. $291 million). The deal values KKW at US$1 billion ($1.4 billion) — slightly less than the US$1.2 billion ($1.7 billion) valuation of Jenner's company, Kylie Cosmetics.

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Under the agreement, Kardashian would retain creative control of the company, while leveraging her more-than 300 million social media followers for "products and communications initiatives."

"This relationship will allow me to focus on the creative elements that I'm so passionate about while benefiting from the incredible resources of Coty," Kardashian said.

READ MORE: How much are the Kardashians and Jenners worth?

The deal, which is expected to close in the third quarter of 2021, is the latest development in a newsy month for Coty. Earlier in June, the company fired CEO Pierre Laubies and replaced him with chairman Peter Harf — its fourth chief executive in four years.

It also announced a series of layoffs in 2019, and a US$3 billion ($4.3 billion) writedown for brands it acquired from Procter & Gamble in 2015.

By Oliver Effron, CNN Business

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