Art & Fragrance goes luxury and snaps up Lalique
luxury perfume market after snapping up its larger rival Lalique
for €44m.
On the back of the acquisition Art & Fragrance intends to develop its presence in the luxury perfume market and move into crystal and jewelry production. France-based Lalique specialises in the manufacture of crystal but around one sixth of its sales revenue is derived from its perfume business which recorded sales growth of 15 per cent in 2007. Art & Fragrance CEO Roger von der Weid said: "Our acquisition of this unique global brand has enabled us to significantly expand our perfume portfolio and move into the coveted prestige perfume segment. "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." To maximise the potential of the acquisition, Lalique has set out a growth strategy for the next three to five years. Strengthening the brand, increasing production capabilities in crystal manufacture, and improving efficiency in sales are among the targets laid out by the company. Art & Fragrance expects a turnover of CHF 35m (€21.7m) for 2007 which is significantly less than the €67m that the acquired firm Lalique is anticipating for the year. With the acquisition, Art & Fragrance expects to increase its turnover to over CHF 140m and make CHF 52m from its perfume and cosmetics segments. However, Art & Fragrance is buying the old French company for €23m less than its expected annual turnover. The buy-out will be financed by cash reserves of €16m, debt capital worth €15.5m and a €12.5m subordinated shareholder loan from majority shareholder and Chairman Silvio Denz. He will also manage and supervise the strategic and operational development of Lalique, which will be integrated as a legally independent subsidiary of Art & Fragrance.
