COTY stock is heading higher Monday following news of a deal with Kylie Jenner.
The deal between Coty (NYSE:COTY) and Kylie Jenner will have them working together to expand Jenner’s beauty products. The goal here is to take the already successful business and introduce it to a global market. Jenner will be promoting the goods through her social media channels.
Coty is making a $600 million investment into the partnership, which nets it a 51% stake. The company says that it expects the deal to be accretive to the net revenue growth in its core fragrance, cosmetics and skin care portfolio over the next three years.
According to Coty, it is also looking for the deal to be accretive to its earnings per share in the first year following its completion. The company says that it doesn’t expect it to have a meaningful impact on its EPS for the current year.
Pierre Laubies, CEO of Coty, has this to say about the deal with Kylie Jenner.
“We are pleased to welcome Kylie into our organization and family. Combining Kylie’s creative vision and unparalleled consumer interest with Coty’s expertise and leadership in prestige beauty products is an exciting next step in our transformation and will leverage our core strengths around fragrances, cosmetics and skincare, allowing Kylie’s brands to reach their full potential.”
COTY stock was up 2.52% as of Monday afternoon. It’s also up 71.22% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.