Coty Inc. the owner of Kylie Jenner’s namesake beauty line Kylie Cosmetics, named a new CEO days after Forbes reported that Jenner gave the magazine false financial information about her brand.
Continue Reading Below
Coty, which purchased a majority stake in Kylie Cosmetics last year, tapped its chairman Peter Harf to replace outgoing Pierre Laubies as CEO of the cosmetics group amid a coronavirus-induced sales slump.
The management change comes after Coty shares tumbled Friday following a Forbes report alleging that Jenner — who sold 51 percent of Kylie Cosmetics to the New York-based company for nearly $600 million — and her mother and manager Kris Jenner, boosted the brand’s financial value to the magazine.
Forbes dropped the youngest of the Kardashian-Jenner clan from its coveted billionaire’s list, despite Jenner saying the report had “a number of inaccurate statements and unproven assumptions.”
KYLIE JENNER NO LONGER A BILLIONAIRE, FORBES SAYS
The New York-based beauty giant finalized a deal Monday to sell a majority stake in its professional beauty and retail hair business to KKR & Co. as the cosmetics company experienced a sales decline due to the coronavirus pandemic.
Coty has received a $750 million investment from KKR, with the remaining $250 million expected to be completed in the next two months. KKR also agreed to purchase a 60 percent stake in Coty’s professional beauty and retail hair-care businesses for about $2.5 billion.
Ticker | Security | Last | Change | Change % |
---|---|---|---|---|
COTY | COTY INC. | 4.29 | +0.66 | +18.04% |
“I’ve known Coty for a long time and there is a lot of potential within this company. I’m delighted to return to an active leadership role. We are all energized by the task ahead – to lead Coty to the best it can be. Further, in KKR, we have a world-renowned investor that will work alongside us in transforming Coty,” Harf said in a statement.
CLICK HERE TO READ MORE ON FOX BUSINESS
With consumers trending toward natural beauty and wearing less makeup, particularly while many are still in quarantine, Coty is investing in skin-care products from brands like CoverGirl, Sally Hansen and Rimmel. Coty also said its aiming for a net reduction in fixed costs of approximately $600 million in cash over the next three years.