SWITZERLAND. Art & Fragrance, the Swiss creator, developer and worldwide distributor of perfumes and cosmetics, has acquired French luxury goods company Lalique from the Pochet group for €44 million.
With the acquisition of this iconic brand, Art & Fragrance will move into crystal and jewellery production. The company said it aims to “significantly boost growth, make headway in the prestige segment with its perfume brand portfolio and expand its activities in the luxury goods sector”.
The acquisition was closed today (Thursday). The €44 million transaction has been financed by cash reserves from Art & Fragrance worth €16 million, a €12.5 million subordinated shareholder loan from majority shareholder and Chairman Silvio Denz and debt capital worth €15.5 million. Lalique will be integrated as a legally independent subsidiary of Art & Fragrance.
Art & Fragrance, listed on the BX Berne eXchange and founded in 2000, expects a turnover of around CHF35 million and a net profit of about CHF8 million for 2007.
Lalique expects to report a turnover of approximately €67 million for 2007, of which around €11 million from its perfume activities, and a balanced operating result (EBIT).
Following the deal, Art & Fragrance expects to increase its turnover to over CHF140 million, of which more than CHF52 million will stem from the beauty segment.
Silvio Denz, Chairman of Art & Fragrance and Lalique, said: “I am very pleased about the acquisition of Lalique with its loyal, highly qualified staff. Art & Fragrance will be an active, committed owner. Lalique is set to quickly achieve attractive profits thanks to sustainable investments and a consistent business approach. I firmly believe that Lalique will greatly profit from our competences in global brand management, substantial potential synergies and our proven track record and wealth of experience.”
Art & Fragrance CEO Roger von der Weid commented: “The long-established company Lalique was an ideal opportunity under our declared strategy of pursuing growth through acquisitions. Our acquisition of this unique global brand has enabled us to significantly expand our perfume portfolio and move into the coveted prestige perfume segment. We have also extended our activities into new areas within the luxury goods sector. The acquisition is a quantum leap forward for the development of Art & Fragrance, a great challenge and an opportunity to prove our potential.”
Accelerated growth strategy for Lalique
To realise the Lalique brand’s full potential, Art & Fragrance has developed a growth plan. Over the next three to five years it aims to strengthen the brand, increase production capacities in crystal manufacturing, optimise the value chain and increase sales efficiency.
The plan involves investments of around €12 million until 2012 which are planned to be financed in part by Lalique’s own profits. Art & Fragrance expects Lalique’s net profit to be positive in 2009 and gradually increase from 2010.
The development of Lalique will be managed by Silvio Denz – who built up Alrodo into one of the leading Swiss perfume chains with over 750 employees before founding Art & Fragrance – as Chairman and CEO.
Von der Weid will also take up a seat on the Board of Directors of Lalique.
Synergies in the perfume segment
With Lalique Parfums, Art & Fragrance said it is complementing its perfume portfolio with a prestigious brand,
which has successfully launched new product lines in recent years and recorded sales growth of +15% in
2007.
The company expects the acquisition to lead to considerable synergies, particularly at sales level.
“In today’s fast-paced perfume industry, where several hundred new products are launched and just as
many disappear from the market every year, ownership of an established traditional brand from the top tier
of the luxury goods segment represents real and sustainable added value,” said von der Weid.
About Lalique
Lalique is one of the world’s best known companies in the crystal, jewellery and perfume business. Founded by René Lalique in the early 20th century, the company creates, produces and distributes luxury goods, jewellery made of crystal and high-quality perfumes. The work of Lalique is part of French cultural heritage. Lalique employs around 600 people and has a global sales network with over 1,200 POS – including 44 company-owned – at exclusive addresses. The brand is a member of the renowned Comité Colbert, an association of 68 French luxury houses. Works by René Lalique are on display in over 40 museums worldwide. Lalique was owned by the French group Pochet from 1994 until its acquisition by Art & Fragrance.
About Art & Fragrance
Art & Fragrance specialises in the creation, development and worldwide distribution of perfumes and cosmetics. Founded in 2000 and headquartered in Zollikerberg near Zurich, the company employs a staff of 30. Art & Fragrance is listed on the BX Berne eXchange. Visit www.art-fragrance.com
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