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Coty, Kylie Announce Strategic Partnership, Coty To Acquire 51% Of Partnership

Coty Inc. (COTY) and Kylie Jenner Monday announced a long-term strategic partnership to build and further develop Kylie's existing beauty business.

As per the agreement, Coty will acquire a 51 percent ownership in the partnership for $600 million. The transaction is expected to be accretive to the net revenue growth of its core fragrance, cosmetics and skin care portfolio by more than 1 percent per annum over the next three years. The transaction is expected to be neutral to Coty's earnings per share in year one, and accretive thereafter. The acquisition is expected to close in the third quarter of fiscal year 2020.

Kylie Cosmetics realized an estimated $177 million net revenues for the trailing twelve months.

Coty and Kylie will set the strategic direction of the partnership, focusing on global expansion and entry into new beauty categories. Kylie and her team will continue to lead all creative efforts in terms of product and communications initiatives.

Kylie Cosmetics and Kylie Skin, are two of the fastest-growing and most-engaged beauty brands on social media.

Coty will have overall responsibility for the portfolio's development, leveraging its global knowledge and capabilities in R&D, manufacturing, distribution, commercial and go-to-market expertise. Further, Coty will act as a licensee for skincare, fragrances, and nail products.

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