IPAR buys Rochas

Interparfums said on Thursday it would buy perfumes and fashion company Rochas from U.S.-based Procter & Gamble for $108 million, taking the French fragrances group into the fashion business for the first time according to Reuters. Confirming an earlier report in Le Figaro newspaper, the company said in a statement it hoped to close the deal by the end of the first half of 2015 and would finance it with medium term.

Inter Parfums, Inc. listed NASDAQ GS: IPAR,  yesterday announced that its majority owned Paris-based subsidiary, Interparfums S.A. has entered into an agreement with The Procter & Gamble Company to acquire the Rochas brand. Founded by Marcel Rochas in 1925, the brand began as a fashion house and expanded into perfumery in the 50s under Hélène Rochas’ direction.

The Rochas brand achieved net sales of US$46 million in 2013/2014 financial year, driven mainly by the «Eau de Rochas» fragrance line. Rochas brand sales include US$2 million of royalties generated by the fashion and accessory business via its portfolio of license agreements. This transaction will cover all brand names and registered trademarks for Rochas (Femme, Madame, Eau de Rochas, etc.), mainly for class 3 (cosmetics) and class 25 (fashion). This acquisition will be payable in cash on the closing date for US$108 million and financed entirely through a medium term loan. This transaction is expected to be completed within the first half of 2015, subject to customary closing conditions.

Jean Madar, Chairman and CEO of Inter Parfums,  declared: «For the first time, this acquisition will integrate both fragrances and fashion. It will open up new opportunities in terms of creativity as well as aesthetic design and marketing choices. It will also allow us to apply a global approach to managing a fragrance brand boasting very high name recognition and without time constraints. Finally, this acquisition has generated enormous enthusiasm internally and high motivation by all to reestablish Rochas’ position, even more preeminent in the universe of luxury. Under Interparfums, we could generate approximately €25 million of sales in 2016».

In the more than 30 years since its founding, Inter Parfums, has been selected as the fragrance and beauty partner for a growing list of brands that include Abercrombie & Fitch, Agent Provocateur, Anna Sui, Balmain, Banana Republic, bebe, Boucheron, Dunhill, Gap, Hollister, Jimmy Choo, Karl Lagerfeld, Lanvin, Montblanc, Oscar de la Renta, Paul Smith, Repetto, Shanghai Tang, S.T. Dupont and Van Cleef & Arpels. Inter Parfums is known for innovation, quality and its ability to capture the genetic code of each brand in the products it develops, manufactures and distributes in over 100 countries worldwide.