FRANCE/BRAZIL. LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, has reached an agreement to acquire a 70% stake in Sack’s, the leading online retailer of fragrances, cosmetics and toiletries and one of the leading companies in the beauty distribution sector in Brazil.
The acquisition will mark LVMH-owned Sephora’s entry into the Brazilian fragrances and cosmetics market, one of the largest and fastest-growing beauty markets worldwide. It will enable Sephora to develop its local platform, online and over time in stores, LVMH said.
Sephora, the leading online beauty retailer in the US, will bring its experience, acquired in international markets and online beauty retailing, to help develop Sack’s business and increase its penetration among Brazilian beauty shoppers.
Founded in 2000, Sack’s carries over 270 brands and has more than 830,000 customers. Sack’s is one of the top-three most frequently accessed e-commerce sites in Brazil, with 4 million unique visitors each month.
Commenting on the deal, Sack’s co-founder and Chief Executive Officer Carlos André Montenegro said: “Being acquired by LVMH and Sephora is an exceptional confirmation of Sack’s great success and opportunities for significant, ongoing growth. We look forward to benefiting from Sephora’s global beauty industry knowledge to further enhance the experience we offer and continue to realise the enormous potential of our company as we open a new chapter of our story.”
Added LVMH Group Managing Director Antonio Belloni: “Carlos André and his partners have developed a great, profitable business with true entrepreneurial spirit. We are proud to join them and contribute to the next phase of Sack’s development. Brazil and, to a larger extent, South America are very promising countries for luxury goods. LVMH has been present there since 1973 and holds a leadership position in prestige beauty as well as in other segments of the luxury market. The opportunity is formidable.”
Montenegro and his partners, Albatroz Participações and Marcelo Franco, will continue to hold a 30% stake in Sack’s. The current management team, led by Montenegro, will remain in place and Sack’s will continue to be based in Rio de Janeiro.
About Sack’s
Sack’s is the leading online retailer of fragrances, cosmetics and toiletries in Latin America. It was launched in 2000 by Carlos Andre Montenegro and Marcelo Franco, and has grown to be among the largest and fastest-growing e-commerce sites in Brazil, winning many awards. The company’s mission is to be the leading provider of online beauty products for Brazilians. Sack’s is headquartered in Rio de Janeiro, and distributes its products throughout Brazil. Visit www.sacks.com.br
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