Inter Parfums seeks first fashion/ fragrance fusion with Rochas acquisition from P&G

By Andrew MCDOUGALL contact

- Last updated on GMT

Inter Parfums seeks first fashion/ fragrance fusion with Rochas acquisition from P&G

Related tags: Perfume, Trademark

Inter Parfums French subsidiary has entered into an agreement with Procter & Gamble to acquire the Rochas brand for $108 million, in a move that will look to fuse fragrance with fashion.

Founded by Marcel Rochas in 1925, the brand began as a fashion house and expanded into perfumery in the 50s under Hélène Rochas' direction.

As such P&G was advised by private investment banking firm Ohana & Co to sell to the Paris-based subsidiary since fashion is not a core capability for the company, but an important element of the Rochas brand.

As per the deal, InterParfums SA will acquire all brand names and registered trademarks for Rochas (Femme, Madame, Eau de Rochas, etc.), mainly for class 3 (cosmetics) and class 25 (fashion).

The acquisition will be payable in cash on the closing date for $108 million and financed entirely through a medium term loan.

Fragrance and fashion fusion

"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,”​ says Jean Madar, Chairman and CEO of Inter Parfums.

“It will also allow us to apply a global approach to managing a fragrance brand boasting very high name recognition and without time constraints.”

Madar also adds that this acquisition has generated enormous enthusiasm internally and high motivation by all to re-establish Rochas' position, even more preeminent in the universe of luxury.

“Under Interparfums, we could generate approximately €25 million of sales in 2016,"​ he says.

Closing

The transaction is expected to be completed within the first half of 2015, subject to customary closing conditions.

The Rochas brand achieved net sales of $46 million in 2013/2014 financial year, driven mainly by the Eau de Rochas fragrance line.

Rochas brand sales include $2 million of royalties generated by the fashion and accessory business via its portfolio of license agreements. 

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