Mar 19, 2015
Interparfums to buy Rochas from Procter & Gamble
Mar 19, 2015
The Interparfums group, which specializes in the design and distribution of fragrances under license, is buying Rochas from American company Procter & Gamble, according to Interparfums CEO Philippe Benacin.
Benacin hasn’t disclosed details regarding the sum involved in the transaction, but according to French newspaper Le Figaro, it amounts to 108 million dollars, making it the group’s largest-ever acquisition.
Interparfums, however, has substantial financial resources at its disposal, since the British luxury brand Burberry paid it 181 million to be able to terminate its fragrance licensing agreement with the French group.
"In the 1970s, Rochas was one of the biggest perfume brands alongside Dior, Guerlain and Chanel," said Benacin.
Last year, Rochas generated a turnover of 46 million dollars, three-quarters of which was from its perfume lines Eau de Rochas and Rochas Man, the rest coming from its longtime fragrances Femme, Madame Rochas and Tocade, according to the newspaper. The company also collects some 2 million a year in royalties from a dozen or so licensees.
According to Le Figaro, Interparfums’ first step will be to refocus Rochas on its two main lines, with the goal of a turnover from its perfumes of 25 million euros in 2016. Within three to four years, it hopes for sales of 50 million euros.
"In acquiring the brand and its archives, we won’t have to pay royalties and we’ll have as much time as we want to develop it, without having to answer to anyone," said Benacin.
Following the loss of the license for Burberry, which at the time represented two thirds of its sales, Interparfums still has a significant perfume license portfolio, including licenses for Montblanc, Jimmy Choo, Balmain and Repetto.
Founded in 1925 in Paris, Rochas was sold in 1987 to the German company Wella, which itself was acquired by Procter & Gamble in 2003.
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