Interparfums just announced to have entered into an agreement with The Procter & Gamble Company in order to acquire the Rochas brand.
The US$108 million transaction covers all brand names and registered trademarks for Rochas (Femme, Madame, Eau de Rochas...), both for class 3 (cosmetics) and class 25 (fashion). With this brand acquisition, Interparfums evolves from its usual business model based on licence agreements.
"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," said Philippe Benacin, Chairman and CEO of Interparfums.
Founded in 1925, the Rochas brand achieved net sales of US$46 million in the 2013/2014 financial year within P&G’s ex-group sales scope, 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.
“Under Interparfums’ scope, we could generate approximately EUR25 million of sales in 2016,” details Philippe Benacin.
The transaction is expected to be completed within the first half of 2015.