Interparfums SA, the Paris-based subsidiary of Interparfums Inc., has entered into an agreement to acquire cosmetics and fashion brand Rochas from Proctor & Gamble.
The US$108 million buyout entitles Interparfums to all brand names and registered trademarks associated with Rochas products such as Femme, Madame and Eau de Rochas. The deal is expected to close within the first half of this year and is significant move for Interparfums, as it marks the brand’s transition into the fashion industry and evolution from its usual business model which has been based on licence agreements.
Philippe Benacin, Chairman and CEO of Interparfums, commented, “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.”
“Under Interparfum’s scope, we could generate approximately EUR25 million of sales in 2016,” Benacin predicted.
Founded in 1925, Rochas began as a fashion house and expanded into perfumery in the 1950s. In the 2013/2014 fiscal year, Rochas reported net sales of $46 million, driven primarily by its Eau de Rochas fragrance line. $2 million of those sales were royalties generated by the brand’s fashion and accessories licensing business.