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Coty and Kim Kardashian-West’s KKW Beauty to expand globally

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Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
KKW to worth $1 billion as it partners with Coty.

Deals and probably success run in the West family. We already talked about the 10-year agreement between Gap and Kanye West earlier today, Kim is now the one that comes into attention. Kardashian-West is to sell 20% of its makeup brand to Coty – the multinational beauty company, which as 2018, owns around 77 brands and expands internationally.

The deal values the KKW company at $1 billion, and the stake that they want to purchase is worth $200 million. The buyer will be responsible for developing haircare, skincare, and personal care and nail products. Kardashian West will be in charge of the creation and communication initiatives. The deal is to be closed in the first fiscal quarter of next year.  

But the deal didn’t come alone. Kim Kardashian West’s beauty-line partner obtained a court order that temporarily blocks the star from sharing secrets about the line and products. Seed Beauty believes that Coty will have an unfair competitive advantage over confidential information. The evidence brought by Seed suggests that Coty obtained, used, and traded secret information on Seed's direct-to-consumer business model.  Coty stock price lost 17% in pre-market trading. As of Friday, the company slid by more than 33.8%, while USA500 gained 18.4%. 

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Sources: marketwatch.com, Bloomberg.com, economictimes.indiatimes.com


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.