On Monday, cosmetic seller Coty Inc stated, it has agreed to purchase a 20% stake in reality TV star Kim Kardashian West’s makeup brand KKW for $200 million.
With the news reaching the market, its shares went shooting up by 17%.
The deal values West’s cosmetics line at $1 billion, slightly lower than the $1.2 billion valuation Coty put on West’s half-sister Kylie Jenner’s business when it bought a majority stake in her namesake cosmetics line in January.
Straddled with billions of dollars in debt and grappling with slowing sales, last month Coty offloaded majority stake in its hair and nail care business to U.S. buyout firm KKR & Co Inc for $3 billion.
Earlier this month, Coty brought back its former Chief Executive Officer Peter Harf to turn around the company.
Coty expects to close the KKW deal in the third quarter of fiscal 2021.