[ad_1]
On the eve of a deal to acquire one of the hottest new names in makeup, the directors of struggling beauty giant Coty Inc. had unconventional concerns.
Will sales drop if the CEO decides to have another child? Can a 22-year-old social media star reliably stay out of trouble? What role will his mother play?
Last year, Coty hatched a plan to pay $ 600 million for a controlling stake in cosmetics startup founded by “Keeping Up with the Kardashians” star Kylie Jenner, an initiative to revive a beauty business. dependent on drugstore staples like Cover Girl and Max Factor.
Coty’s principals ultimately decided that Kylie Cosmetics’s metrics – $ 200 million in annual revenue with less than a dozen employees and virtually no ad spend – outweighed their concerns. The assurances of Ms Jenner’s mother, Kris Jenner, who helped launch the business in 2015 and led the negotiations, were also compelling.
A year after closing the deal, Kylie Cosmetics both beefed up its new parent company and dealt it a few hits, though none that the company initially expected.
[ad_2]
Source link