SWITZERLAND. Art & Fragrance SA, the creator, marketer and distributor of perfumes and cosmetics, has today launched its entry onto the BX Berne eXchange.
The price range per share is CHF20 to CHF23. Following the conclusion of the IPO, this corresponds to a market capitalisation of about CHF100 million to CHF115 million. The free float will amount to a maximum of 20%.
Tthe first day of trading is expected to be 19 September 2007. No new shares will be created in the IPO, the company said.
As part of the IPO, up to 1,000,000 of the total 5,000,000 Art & Fragrance shares belonging to founder
and current sole shareholder Silvio Denz will be placed in the public domain.
The IPO comprises a public offering in Switzerland and private placements with selected institutional investors outside Switzerland and the US. Individuals close to the company are being given the opportunity to subscribe to up to 500,000 registered shares at the placement price.
Explaining the decision to float the firm, Board Chairman Denz said: “The aim of the flotation on the Berne stock exchange is to broaden our ownership structure and increase our visibility. We are pursuing an ambitious growth strategy, the aim of which is not only to exploit the potential of our brand portfolio more fully, but also to acquire additional brands and take on strategic holdings. As a listed company we will create additional transparency and therefore raise confidence among existing and new partners.”
Chief Executive Officer Roger von der Weid commented: “Our recipe for success in a market that is largely dominated by multinational companies and luxury goods groups is based in the first instance on our many years’
experience and competence, our international network of contacts and our streamlined, efficient structures. Thanks to consistent outsourcing we have a good cost structure and, in terms of flexibility and time to market, are already up there with the leading players in the industry. We are convinced that the public offering will allow us to develop our position as a successful niche player even further.”
Results for 2006 and first half 2007
Over the last few months Art & Fragrance has realigned its group structure, having acquired Ultrasun AG in January 2007 and Parfums Alain Delon SA and Parfums Grès SA in February 2007 (both brands were previously held under licence).
On a pro-forma basis, Art & Fragrance generated operating revenue of CHF40.3 million in 2006. EBIT amounted to CHF7.7 million and the EBIT margin stood at 19.2%. In the first six months of 2007, operating revenue of CHF16.8 million was achieved, EBIT reached CHF4.1 million and the EBIT margin was 24.5%. Net group profit for the first half of 2007 totalled CHF 7.1 million.
Art & Fragrance brand fact file
Parfums Alain Delon
Acquisition of licence: 2000; acquisition of brand: 2007.
Products: Samouraï (in top five in Japan since licence taken over by Art & Fragrance)
Sales by region: Asia 61%, Europe 21%, Americas 11%, Middle East 7%.
Parfums Grès
Acquisition of licence: 2001; acquisition of brand: 2007
Products: Cabochard, Ambre de Cabochard, Cabotine, Fleur de Cabotine, Cabaret, Caline
Sales by region: Europe 42%, Asia 26%, Middle East 16%, Americas 15%, Other 1%.
Jaguar Fragrances
Acquisition of licence: 2002; contract runs until 2011 with option to extend
Products: Jaguar Classic, Jaguar Performance, Jaguar Woman, Jaguar Fresh
Sales by region: Europe 37%, Middle East 30%, Americas 18%, Asia 12%, Other 3%.
Ultrasun
Acquisition of brand: 2007
Leading Swiss quality products in the area of sun protection
Sales by region: Central and northern Europe 90%, rest of the world 10%.
About Art & Fragrance
Art & Fragrance, which was founded in 2000 and is based in Zollikerberg near Zurich, achieved a turnover of CHF40 million in 2006 and employs 30 people. Visit www.art-fragrance.com
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Art & Fragrance to be floated; plans brand expansion – 30/07/07
