Based on an agreement to acquire one of the newest names in makeup, the directors of the banged up beauty giant Coty Inc. had some unconventional concerns.
Will the sales decline if the chief executive decides to have another child? Can a 22-year-old social-media star reliably stay out of trouble? What will be his mother’s role?
Last year, Coty began planning to pay $ 600 million for a controlling stake in a cosmetics startup founded by “Keeping Up with the Kardashian” star Kylie Jenner, which was aimed at relying on drug staples like Cover Girl and Max One was to revive the beauty business. Factor.
Coty’s directors eventually decided on Kylie Cosmetics’ metrics — $ 200 million in annual revenue with fewer than a dozen employees and virtually no advertising expenses. Also persuasive was reassurance from Ms. Jenner’s mother, Chris Jenner, who helped launch the company in 2015 and led the negotiations.
A year after closing the deal, Kylie Cosmetics has worked with its new parents and dealt with some of the explosions – though none that the company had initially anticipated.