Kim Kardashian In Talks To Repurchase Stake In SKKN Beauty Brand From Coty
Reality TV star and entrepreneur Kim Kardashian is reportedly in discussions to buy back a minority stake in her beauty products firm, SKKN By Kim.
Three years ago, Kardashian sold the stake to fragrance and cosmetics company Coty for $200 million. According to sources familiar with the matter, Kardashian, now 42 years old, is looking to regain ownership of the 20 percent stake from Coty.
The negotiations, as reported by the Wall Street Journal on Tuesday, have not yet finalized a price, and the deal remains subject to potential setbacks. Kardashian’s intention to repurchase the minority stake is part of her broader plan to expand SKKN’s beauty categories.
Coty, based in New York, acquired the 20 percent stake in Kardashian’s beauty brand back in June 2020, valuing the company at $1 billion. The French-American company, which boasts an extensive portfolio of renowned brands such as Max Factor and CoverGirl, experienced a surge in share prices of up to 4 percent in after-hours trading following the news.
SKKN By Kim, Kardashian’s brand, primarily focuses on facial skincare products, including exfoliators, cleansers, and moisturizers. The brand offers products ranging from a $43 cleanser to $95 oil drops. Kardashian aims to regain Coty’s stake in order to diversify SKKN’s beauty categories, although it remains unclear if any previous partnership agreements with Coty imposed restrictions on product lines.
Coty, founded in Paris in 1904, stands as one of the world’s largest beauty companies, boasting an extensive portfolio of well-known brands. In May, the company unveiled its latest ventures, including the introduction of the ‘ultra-premium’ skin-care product Orveda Omnipotent Concentrate Sérum and the fragrance project Infiniment Coty Paris.
Kim Kardashian rose to prominence through her family’s popular TV show, Keeping Up with the Kardashians, and has since built a thriving business empire through various ventures. In 2019, she launched shapewear brand Skims, receiving $5 million in funding from VC firm Imaginary Ventures. Skims achieved a valuation of $3.2 billion in the previous year. Additionally, Kardashian founded investment firm SKKY Partners with former Carlyle partner Jay Sammons last summer, and the firm is presently raising its inaugural fund.
Coty has previously collaborated with Kylie Jenner, Kardashian’s half-sister. In 2019, the company acquired a controlling stake in Kylie Cosmetics, the makeup line launched by Jenner in 2015, for $600 million.
Kardashian made her debut on the Forbes billionaires list in 2021, with her current estimated net worth standing at $1.2 billion.
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