Burberry has exercised its option to buy out the license rights for its fragrance and beauty products from Inter Parfums, for €181 million. The two parties have been engaged in discussions regarding the creation of a new operating model for the business since December 2011.
According to Inter Parfums, those discussions are ongoing. But if no new comprehensive agreement is reached, the current license will end on 31 December 2012.
Inter Parfums Chairman and CEO Jean Madar commented: “Discussions longer and more complex than expected have naturally led Burberry to exercise its option to buy out the license agreement before the 31 July deadline to ensure its ability to benefit from all possible alternatives. On our side, we have largely anticipated the consequences of this partnership being extended or not.
“For that reason, we are today particularly confident and motivated about the prospects of opening a new page in our history, regardless of the outcome of these discussions.”
Inter Parfums acquired the Burberry fragrance license in 1993. It is estimated that the Burberry fragrance business accounts for around half of Inter Parfums’ net sales.
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