Coty is getting into the online social selling space with its partnership with the Founders of Younique, a leading beauty social platform that sells products under the Younique brand to women in 10 countries around the world. Under the proposed agreement, Coty intends to acquire 60 percent of the company for approximately $600 million in cash. Younique’s Founders, CEO, Derek Maxfield, and his sister, Chief Visionary Officer, Melanie Huscroft, will continue to lead the business in the new partnership and will own the remaining 40 percent of the business. Younique will operate as a separate business within Coty’s Consumer Beauty division.

All Younique makeup and skin care products are sold through its peer-to-peer e-commerce platform, which engages with more than 4.1 million consumers via approximately 200,000 active presenters.Coty is expected to bring its beauty R&D expertise, as well as manufacturing and supply chain capabilities to the business, which is estimated to generate approximately $400 million in net revenues in 2016.

The transaction is subject to customary closing conditions and is expected to close during Coty’s 2017 fiscal third quarter. The transaction is expected to be immediately accretive to Coty’s top-line growth, EBITDA margin and FY17 earnings.