On the eve of an agreement to acquire one of the hottest new names in makeup, the directors of beauty giant Coty Inc. they had some unconventional concerns.
Will sales fall if the chief executive decides to have another child? Can a 22-year-old social media star stay safe out of trouble? What role will her mother play?
Last year, Coty drew up a plan to pay $ 600 million for a controlling stake in the cosmetics startup founded by “Keeping Up with the Kardashians” star Kylie Jenner, a move to revive a beauty business. dependent on commodities such as Cover Girl and Max. Factor.
Coty executives finally decided Kylie Cosmetics’ values - $ 200 million in annual revenue, with less than a dozen employees and virtually no advertising costs – were beyond their control. Also persuasive were the assurances from Mrs. Jenner’s mother, Kris Jenner, who helped launch the company in 2015 and led the negotiations.
A year after the transaction ended, Kylie Cosmetics strengthened her new parent and gave her a few blows – though none of those initially anticipated by the company.