NEW YORK — Coty Inc. has acquired a 51% stake in Kylie Jenner’s beauty brands, Kylie Cosmetics and Kylie Skin for $600 million.

According to the companies, the deal will result in a long-term strategic partnership that aims to  develop Jenner’s existing beauty business into a global powerhouse brand. Jenner and her team will continue to lead the brands’ product and communications initiatives, building on the celebrity’s unrivaled global reach through social media. Jenner has more than 270 million followers across her personal and brand social media channels.

“We are pleased to welcome Kylie into our organization and family,” said Coty chief executive officer Pierre Laubies. “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.”

Coty called the transaction a key milestone in its ongoing transformation into a more focused and agile company. Coty will have overall responsibility for the portfolio’s development, leveraging its global knowledge and capabilities in R&D, manufacturing, distribution, commercial and go-to-market expertise, as well as its deep understanding of the fragrances, cosmetics and skincare categories. In addition to its responsibilities within the partnership, Coty will act as a licensee for skincare, fragrances, and nail products.

“I’m excited to partner with Coty to continue to reach even more fans of Kylie Cosmetics and Kylie Skin around the world,” Jenner said. “I look forward to continuing the creativity and ingenuity for each collection that consumers have come to expect and engaging with my fans across social media. This partnership will allow me and my team to stay focused on the creation and development of each product while building the brand into an international beauty powerhouse.”

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 $177 million in net revenues for the trailing twelve months.

“This new partnership between Kylie and Coty is an exciting step in Coty’s renewed emphasis on its beauty business,” said company chairman Peter Harf. “Kylie is a modern-day icon, with an incredible sense of the beauty consumer, and we believe in the high potential of building a global beauty brand together.”

The acquisition is expected to close in the third quarter of fiscal year 2020. All beauty categories within the new partnership will continue to be sold through leading luxury beauty retailers as well as owned digital channels.