Kim Kardashian West may soon become the true billionaire of the Kardashian-Jenner family.
After signing a $ 200 million deal with Coty for a 20 percent stake in her beauty business KKW, the 39-year-old reality star and wife of music artist Kanye West is now just a kiss of air from being a billionaire, according to the Forbes wealth tracker.
Coty’s deal values the four-year KKW Beauty for $ 1 billion, making Kardashian West – which also owns its formal clothing brand Skims and the mobile game “Kim Kardashian: Hollywood” – worth approximately $ 900 million Forbes said.
If Kardashian West manages to get past the billionaire’s hump, she will be the first daughter of Kris Jenner to be declared a billionaire. The status first went to younger sister Kylie Jenner and her fellow makeup entrepreneur last year, but the financial magazine tore the headline as part of an explosive May 29 report that accused Jenner of falsely inflating the his wealth, even lying about makeup sales.
The pouting lips tycoon contested the report, which was based in part on Coty’s financial information about Jenner’s beauty brand, Kylie Cosmetics, after the owner of CoverGirl MaxFactor had taken a majority stake last year for $ 600 million.
And there is no doubt that Coty is helping to enrich both sisters in an attempt to increase their sales.
The latest deal calls for Coty to develop new products with Kardashian, including skin, hair and nail care brands. KKW is mainly known for its colored cosmetics and highlighters.
“Kim is a true global icon of our day. She is a visionary, an entrepreneur, a mother, a philanthropist and through social media she has an unparalleled ability to connect with people from all over the world, “said Peter Harf, president and CEO of Coty.” This influence, combined with the Coty’s leadership and profound expertise in prestige beauty will enable us to reach the full potential of its brands. “
Harf said Coty, which owns the CoverGirl and Max Factor brands, doubled the powerful social media brands to drive its growth, which was struggling last year due to a heavy debt load and a decrease in the demand for its products.
Harf showed his hand earlier this month when he told investors that he and Kris Jenner – Kim and Kylie’s mom – are “good friends” and that he had access to the family – resulting in a regulatory deposit that revealed that Coty was in talks with Kim Kardashian. Kris Jenner holds an 8% stake in KKW, according to Forbes.
Coty’s shares were recently traded 10 percent to $ 4.60 per share.
The KKW deal is expected to close in the third quarter, Coty said.