The rumored deal for Coty Inc. to take a majority stake in Kylie Cosmetics became a reality Monday. Coty, which is still digesting its 2015 purchase of 41 brands from Procter & Gamble—and is now looking to divest its professional division—agreed to pay $600 million for 51% of Kylie Jenner’s beauty business.

The deal values Kylie Cosmetics, which will be renamed Kylie Beauty, at about $1.2 billion. The transaction is expected to close in the third quarter of 2020.

It was the latest in a buying binge of burgeoning beauty brands this year, including Monday’s announcement that Estée Lauder bought the remaining two-thirds of Asia-based Have & Be Co. Ltd., which owns Dr. Jart, and is valued at approximately $1.7 billion. In October, Shiseido bought Drunk Elephant for $845 million.

What attracted Coty to the maker of The Lip Kit, which broke the internet with its launch in 2015, is the magnetic pull the 22-year-old has over her 270 million followers on social media, along with the potential her namesake beauty line has internationally. More than half of Kylie’s followers reside outside of the U.S., according to Coty’s Chief Financial Officer, Pierre-André Terisse , in a call with financial analysts following the announcement.

Branching into other categories is also part of the plan, with Coty acting as the licensee for skin care, fragrance and nail polish—categories where Pierre said Coty has expertise. He adds the company plans to tap into its research and development capabilities, manufacturing, distribution and launch expertise to nurture the brand. Kylie will retain a 49% stake in the company and remain hands-on in product development and social outreach.

“I’m excited to partner with Coty to continue to reach even more fans of Kylie Cosmetics and Kylie Skin around the world,” Kylie relayed in a statement. “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.”

Beyond the sheer power of Kylie’s name, Pierre noted the impact the brand has made in brick and mortar distribution since debuting in Ulta Beauty last November. Ulta officials confirmed earlier this year that the presence of Kylie helped attract younger shoppers. Just recently, Ulta added Kylie Skin to its assortment to keep the momentum going.

Year-to-date net sales of Kylie beauty products presented by Coty totaled $177 million (with estimates sales will reach $200 million by year end), up 40% over calendar 2018, with the business broken out 50/50 between direct to consumer and physical stores.

Estee Lauder’s purchase of Dr. Jart, which is expected to close in December 2019, follows the company’s December 2015 minority investment in Have & Be Co. Ltd. and is pursuant to an agreement made at that time. As one of the fastest growing skin care brands globally, Dr. Jart+ is expected to help further Lauder’s leadership position in skin care, and will especially help expand its consumer reach in Asia/Pacific, North America, the United Kingdom and travel retail. It marks Lauder’s first acquisition of an Asia-based beauty brand. Dr. Jart+ is expected to reach more than $500 million in net sales in calendar year 2019. Have & Be’s total enterprise is valued at approximately $1.7 billion. Jane Hertzmark Hudis, Group President, The Estée Lauder Companies Inc., will add Dr. Jart+ to the portfolio of brands she oversees.

During the presentation of what Coty labeled the “strategic partnership with Kylie Jenner,” Pierre explained the acquisition as phase three of Coty’s transformation. The first was a complete bottoms-up assessment of Coty Brands, with a four-year roadmap to return to revenue growth and expand margins. The second centered on the intention to focus on core fragrances, skin care and cosmetics. As part of its plan Coty sold its controlling stake in Younique, a social selling company, back to its original founders in August.

Phase three focuses on amplifying growth, which Pierre said Kylie will help accomplish. He noted she is the seventh most followed person on Instagram; Kylie Cosmetics on Instagram gains 7,000 followers per day, and Kylie Cosmetics has the highest engagement among all beauty brands.

The analyst community peppered Pierre with questions concerning reports of a slowdown in Kylie Cosmetics in recent months, as well as chatter that consumers are putting the brakes on spending on makeup. They also questioned the price of the brand, which they wondered whether it would continue to be in tune with consumer tastes.

“In May, Kylie Skin sold out in 10 hours and is on track to produce $25 million in 2019,” said Pierre, who added 50% of sales are repeat purchases. “The brand has moved from cosmetics to skin care with so much success. We don’t see signs that this will not be a sustainable brand.”

Shares of Coty grew to 12.22 from 12 following the announcement; a Wells Fargo report noted a positive that Kylie is “one of the fastest growing cosmetics brands and the transaction should greatly expand Coty’s presence in the specialty and e-com channels.”

While the deal seems to be beneficial to both Coty and Kylie, the billion-dollar question is how fans will react to the news.