Beauty products maker Coty Inc said it would buy a 60 percent stake in privately held online cosmetics retailer Younique LLC for about $600 million as it reduces its dependence on its ailing fragrance business.
Coty said it intends to buy the stake in Younique, through a combination of cash and debt. The deal is expected to immediately add to Coty's earnings in 2017.
Younique also sells its cosmetics through individuals, known as 'presenters', who use social media and other direct selling methods to market the products.
Coty has inked multiple deals, including the $12.5 billion acquisition of Procter & Gamble Co's specialty beauty business, which included brands such as Clairol and Wella.
Younique is expected to generate revenue of about $400 million in 2016, Coty said on Tuesday. Coty had reported lower-than-expected quarterly revenue in November, citing slowdown in demand for its fragrances and color cosmetics. The company had said this slump in revenue would continue in the current quarter.