Luxury consumer goods provider Art & Fragrance has acquired a filling and logistics facility, based in Ury, France, having bought all shares in the family business Cosmetics Perfumes Services (CPS).
The business was established in 2005 and is focused on the preparation, filling and packaging of perfumes and cosmetics, as well as providing associated logistical services that include storage of finished goods, together with handling and shipping.
Although Switzerland-based Art & Fragrance did not reveal how much it will be paying to acquire the business, it did say that it will retain the 70 existing CPS employees and that it does have plans to invest in new equipment in order to strengthen the manufacturing potential at the facility.
Aiming to consolidate manufacturing at the facility
The acquisition makes particular sense for Art & Fragrance because its business subsidiaries Lalique Parfums and Jaguar Fragrances are already existing customers of the facility.
While the co-operation between CPS and Lalique dates back to 2007, the facility has also listed the fragrance arm of the Nina Ricci brand as one of its past clients.
The deal means that Art & Fragrance will now transition its entire perfume portfolio to the facility, enabling it to process everything under one roof, in turn giving way to significant manufacturing efficiencies and potential cost savings.
Giving more control to the manufacturing process
“By in-sourcing the production and logistics for our perfume brands, we are controlling and securing a key element in our value chain,” said Roger von der Weid, CEO of Art & Fragrance.
“This is an important strategic advantage in light of our now significant perfume volume. We also expect savings in our production and logistics costs in the medium term.”
The acquisition of the new manufacturing facility will help support significant growth in the company’s fragrance and cosmetics operations in recent years, mainly on the back of brands such as Lalique, Gres, Ultrasun, Jaguar and Nikki Beach Beauty. It also produces jewellery and cut glass.