Coty to buy 20% stake in Kim Kardashian West's $1 billion beauty line

Earlier this month, the company brought back its former Chief Executive Officer Peter Harf to turn around its business. Coty projected the KKW deal to close in the third quarter of fiscal 2021.

Coty Inc will buy a 20% stake in reality TV star Kim Kardashian West's makeup brand KKW for $200 million, the cosmetics maker said on Monday, sending its shares up 17%.

The deal values West's cosmetics line at $1 billion, slightly lower than the $1.2 billion valuations Coty put on West's half-sister Kylie Jenner's business when it bought a majority stake in her namesake cosmetics line in January. West, who is known for chronicling her life with her sisters on TV's "Keeping Up with the Kardashians", launched her makeup line in 2017, two years after Jenner's successful foray into the beauty industry.

Coty, which has billions of dollars in debt and is grappling with slowing sales, last month offloaded majority stake in its hair and nail care business to U.S. buyout firm KKR & Co Inc for $3 billion amid temporary salon closures across the globe. Earlier this month, the company brought back its former Chief Executive Officer Peter Harf to turn around its business.

Coty projected the KKW deal to close in the third quarter of fiscal 2021. Shares of the company have lost about 63% of their value this year.