Interparfums Buys P&G Fashion Brand

Interparfums S.A., the Paris-based subsidiary of Inter Parfums, Inc., has acquired the Rochas cosmetics and fashion brand from Procter & Gamble for $108 million in cash.

The acquisition marks a transition for the beauty company into the world of apparel and covers Rochas trademarks including Femme, Madame and Eau de Rochas. The deal is expected to close within the first half of the year.

Founded in 1925, the brand began as a fashion house and expanded into perfumery in the '50s. In the 2013/2014 fiscal year, Rochas had net sales of $46 million, driven primarily by its Eau de Rochas fragrance line. $2 million of those sales were royalties generated by the brand's fashion and accessories licensing business.

"For the first time, this acquisition will integrate both fragrances and fashion. It will open up new opportunities in terms of creativity as well as aesthetic design and marketing choices," says Jean Madar, chairman and chief executive officer, Inter Parfums, Inc. "It will also allow us to apply a global approach to managing a fragrance brand boasting very high name recognition. This acquisition has generated enormous enthusiasm internally and a high motivation by all to re-establish Rochas' position, making it even more preeminent in the universe of luxury."

Inter Parfums, Inc. current develops and manufactures a raft of licensed fragrances and beauty lines in more than 100 countries worldwide. Brands in its roster include Abercrombie & Fitch, Anna Sui, Balmain, Banana Republic, Bebe, Jimmy Choo, Karl Lagerfeld, Lanvin, Montblanc and Oscar de la Renta.