"This will be our first foray into the service side of the personal care industry, it will be an acquisition of a high end men's grooming brand marking our official entry into prestige skin care products," said chairman Philippe Benacin of Inter Parfums.
Inter Parfums, makers and distributers of fragrances and cosmetics, said that it expects the transaction to be closed in the first quarter of this year, giving the company a position in men's skin care and services.
The agreement also suggests a provision for a follow-on cash injection by Inter Parfums of €3 million, which would be used to expand Nickel spa locations and bring Inter Parfums ownership to 74 per cent.
In addition, minority shareholders will have the right to sell their remaining interest in Nickel to Inter Parfums SA from January 2007 through to June 2007. The purchase price will be based on a formula applied to Nickel's sales for 2006, prorated for the minority holders' equity in Nickel.
Established in 1996, Nickel has developed two concepts; spas exclusively for male customers and skin care product lines for men. The Nickel range of some 15 skin care products for the face and body is sold through prestige department and speciality stores primarily in Western Europe and America.
Nickel operates men's spas in Paris, New York and San Francisco, and plans to open spas in London, Berlin, Barcelona, Milan, Los Angeles and Miami. The company forcast sales of nearly €5 million to year end, which would represent a 50 per cent increase over the previous year.
"We have found an ideal partner in Inter Parfums, one that can help us achieve sustainable growth through its marketing savvy, industry reputation and product distribution in 100 countries worldwide," said Phillippe Dumont founder of Nickel.
Inter Parfums develops, manufactures and distributes perfumes and cosmetics as the worldwide licensee for Burberry, ST Dupont, Paul Smith, Christian Lacroix, Celine, and Diane von Furstenberg. It is also a leading producer and supplier of mass market fragrances, cosmetics and personal care products. The company's products are sold in over 100 countries worldwide.