Despite several months of negotiations between luxury group Burberry and prestige beauty company Interparfums no agreement was achieved regarding the continuation of the exclusive worldwide license partnership linking them for fragrance and beauty products.
Interparfums announced this morning that its partner has exercised an option to buy out license but that discussions continue between the two organizations. “Although an agreement has been reached on certain main terms and conditions, important points remain to be finalized,” said the company in a release.
According to Philippe Benacin, Interparfums’ Chief Executive Officer: "Burberry exercised its option to buy out the license agreement before the July 31 deadline to ensure its ability to benefit from all possible alternatives.”
In the event where no agreement would be reached, the contract will end up effective December 31, 2012, with a buy out price amounting to 181 million euros (exclusive of receivables, inventories and other tangible assets) to be paid by Burberry.
“On our side, we have largely anticipated the consequences of this partnership being extended or not. For that reason, we are today particularly confident and motivated about the prospects of opening a new page in our history, regardless of the outcome of these discussions," highlighted Philippe Benacin.