Per Coty's release, they will be acquiring a 51% ownership in the partnership for $600 million. However, they are confident the deal will only mean a huge opportunity of revenue growth in the near future.
"Coty expects the transaction will be accretive to the net revenue growth of its core fragrance, cosmetics and skin care portfolio by more than 1% p.a. over the next three years. The transaction is expected to be neutral to Coty’s earnings per share (EPS) in year one, and accretive thereafter. The ROIC of the transaction is expected to exceed Coty’s cost of capital by Fiscal 2023. Kylie Cosmetics realized an estimated $177M net revenues for the trailing twelve months (TTM)."
The deal is expected to wrap up in the third quarter of the next fiscal year. The CEO of Coty is also excited, and spoke about the big plans for Kylie's brand.
"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.”