PARIS, March 15 (Reuters) – French luxury goods conglomerate LVMH (LVMH.PA) has agreed to acquire a 60% stake in Italian fragrance maker Interparfums (IPRP.PA), strengthening its position in the growing fragrance market.
The deal, which values Interparfums at around 1.4 billion euros ($1.68 billion), will allow LVMH to add brands such as Lanvin, Rochas and Boucheron to its portfolio of fragrances, which already includes Dior, Givenchy and Guerlain.
Interparfums reported sales of 511.2 million euros for 2022, with net profit up 8.8% to 67.5 million euros, and expects to see continued growth in the coming years.
The acquisition is subject to regulatory approvals and is expected to close in the second half of 2023. LVMH shares were up 1.2% in early trading on Wednesday, while Interparfums shares jumped 14.4%.
LVMH, controlled by France’s richest man Bernard Arnault, has been on a buying spree in recent years, acquiring brands such as Tiffany & Co, Bulgari and Belmond, as it seeks to expand its luxury empire.
The group, which also owns fashion houses Louis Vuitton and Christian Dior, generated sales of 79 billion euros in 2022, with profit up 23% to 21.1 billion euros.
Interparfums, founded in 1988, has a portfolio of over 40 fragrance brands and distributes its products in over 120 countries.
The company has been growing rapidly in recent years, thanks to the success of brands such as Lanvin’s Eclat d’Arpege and Boucheron’s Quatre.
The acquisition of Interparfums is a major coup for LVMH, as it gives the group access to a portfolio of fast-growing fragrance brands and strengthens its position in the lucrative fragrance market.
The deal is also a testament to the strength of the luxury goods market, which has remained resilient despite the economic headwinds caused by the COVID-19 pandemic and the war in Ukraine.
Analysts say that the acquisition will further boost LVMH’s position as the world’s leading luxury goods conglomerate and will help it to continue to grow its market share in the coming years..
