Following earlier reports that was in talks with Inter Parfums to buy back its fragrance license at the end of the year, the beauty brand has announced that it will indeed be purchasing the license for $US220.8 million, according to WWD.
While the Burberry fragrance business makes up approximately 50 per cent of Inter Parfum’s revenue, the company has stressed that it still has a large portfolio of brands.
We will also benefit from substantial resources to potentially acquire one or more brands, either on a proprietary basis or as a licensee,” says Inter Parfums.
Russell Greenberg, executive vice president and chief financial officer adds, "This new situation will allow us to strengthen investments supporting all of our portfolio's brands to accelerate their development while maintaining an operating margin of more than 10 percent. Opportunities for external growth will be examined without urgency, with the priority of maintaining the quality and homogeneous nature of our portfolio.”
