It was announced in veiled terms on mid-July and it is now official: Burberry announced the end of its discussions with Interparfums SA. The British brand will therefore buy back its licence rights in the perfume and cosmetics sector for EUR 181 million euros (USD 220 million at current exchange rates exclusive of receivables, inventories and other tangible assets).
Interparfums is now facing a huge challenge: Burberry represented more than a half of its turnover. The company claims a number of strengths, mainly a balanced portfolio of brands with strong growth potential (including Montblanc and Jimmy Choo) and a worldwide distribution network.
Interparfums will also benefit from substantial resources to potentially acquire one or more brands, either on a proprietary basis or as a licensee. Net cash at the beginning of 2013 of nearly $250 million and Inter Parfums, Inc. shareholders’ equity of approximately $375 million, underscore our significant borrowing capacity.
“Given our many strengths, we are confident in our outlook as we enter a new phase in our history. Based on current growth rates for all of our portfolio’s brands, our preliminary full-year sales target for 2013 may reach approximately USD400 million at current exchange rates,” commented Jean Madar, Chairman and CEO of Interparfums Inc.