MILAN — Perfume Holdings, a subsidiary of Milan-based investment group Investindustrial, has acquired 72 percent of Selective Beauty, the French manufacturing and distribution company, for an undisclosed sum.
The news follows a WWD report on April 3 that a new investor was set to take a stake in Selective Beauty to replace English private equity firm 3i.
Perfume Holdings acquired 46 percent of Selective Beauty from 3i, and the remainder was purchased from existing management and other financial investors.
CB Holding, a firm controlled by Corrado Brondi, Selective Beauty's chairman and one of the company's founders will keep the remaining 28 percent stake in Selective.
The deal, which was officially signed last month, is expected to be completed in mid-June, and, according to industry sources, Selective Beauty's other co-founder, Christophe Cervasel, is expected to leave the company by the end of the month.
Selective Beauty's majority stake is the latest acquisition for Investindustrial's growing beauty portfolio, which includes Morris Profumi SpA and Atkinsons, both purchased by the firm last year.
In an interview with WWD, Brondi said the sale would enable Selective Beauty to pursue future strategies. "It's not only a matter of change of ownership," explained Brondi. "Investindustrial has specific knowledge of the industry and through Morris they own a factory that produces fragrances which has spare capacity. One of Selective Beauty's key weaknesses today is the supply chain. We started initially as a distributor so we will collaborate with them closely on supply chain problems," said Brondi.
Brondi said Investindustrial and his firm, CB Holding, would soon inject a substantial amount of funding into Selective Beauty. The undisclosed sum, added Brondi, will help Selective Beauty strengthen its core brands and allow it to discontinue working with other perfume brands it distributes in one or two countries. Brondi refused to name the brands the firm planned to cut from its portfolio.
"Our aim is to have a limited number of partner brands that we have both the license and distribution for. We will lose sales initially by cutting back our brand numbers but we feel we'll gain it back by honing our core brands," said Brondi.Selective Beauty, which generates annual sales of about 180 million euros, or $279.3 million at current exchange, holds beauty licenses for brands including John Galliano, MaxMara and Trussardi, and distributes brands such as Bulgari, Burberry and Agent Provocateur.
Founded in 2000, the Paris-based company's turnover doubled from 2005 to 2007.
"This is another reason why we need more financial resources," said Brondi. "We have grown very big quickly and we want to continue to grow double digits on our relevant brands."
Together with Investindustrial, Brondi said he hoped to grow Selective Beauty into a company with a turnover exceeding 200 million euros, or $310.6 million, in four to five years.
— Stephanie Epiro
Beiersdorf Consumer Division Net Gains
BERLIN — Beiersdorf AG reported that first-quarter earnings before interest and taxes for its consumer division, which includes Nivea, La Prairie, Juvena, Labello, Florena, Eucerin and other brands, as well as Curad and Curitas plasters, reached 171 million euros, or $256.1 million at average exchange, a gain of 13.2 percent over the previous year.
Consumer division sales grew by 10.7 percent, or 13.9 percent on a currency adjusted basis, to 1.29 billion euros, or $1.95 billion.
Organically, the division grew 9.7 percent. This excludes the 2007 acquisition of the C-Bons Hair Care Group in China and the 50 percent share increase Beiersdorf took in its Swiss affiliate, where Beiersdorf now holds a 100 percent stake.
Beiersdorf said global Nivea sales rose 12.4 percent in the quarter, motored by strong sales of Nivea deodorant, Nivea for Men, Nivea Body, Nivea Bath and the relaunch of Nivea Hair Care. La Prairie sales were up and Eucerin grew by 5 percent.
Currency adjusted group sales rose 12.9 percent to 1.52 billion euros, or $2.28 billion, with EBIT up 14.5 percent to 197 million euros, or $295.1 million.
— Melissa Drier
Martin-Vachon Joins Lise Watier
Anne Martin-Vachon, former chief marketing officer of the Bath & Body Works Division of Limited Brands Inc., has joined Montreal-based Lise Watier Cosmétiques Inc. as president and chief executive officer.She will succeed the company's founder, Lise Watier, and her husband, Serge Rocheleau, who will remain on the board as co-chairs and significant shareholders.
Watier founded the prestige market cosmetics, skin care and fragrance company 36 years ago and she will continue to consult on product and brand equity development, according to Martin-Vachon, who spoke during a telephone interview. Watier will remain a spokeswoman for the company. Imperial Capital Corp. made a sizable equity investment in Watier in March 2007.
Martin-Vachon, a French-Canadian citizen from Trois-Rivières, Quebec, said she plans to relocate from Columbus, Ohio, to Montreal and assume her duties in mid-August. It will mark a homecoming after two decades of living in the U.S. Martin spent much of her 23-year career at Procter & Gamble Co., where she held a number of positions in U.S. and international markets, including vice president of Total Beauty Marketing and vice president of Global Cosmetics Marketing.
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)
@Pharrell and his wife Helen Lasichanh were among the stars that came out to celebrate @rimowa’s first pop-up concept shop. The space, which is located on Rodeo Drive in Beverly Hills, draws inspiration from airport luggage carousels and lounge areas – and features the company’s luggage and accessories. If the pop-up is successful it could pave the way for addition temporary shops throughout the world. #wwdfashion (📷: Owen Kolasinski/BFA)
@carineroitfeld celebrated @crfashionbook’s first calendar last night with a dinner party at Spring Place in Manhattan. Photographed by @stevenkleinstudio, the calendar takes on a fitness theme and features @joansmalls, @gigihadid, @danielle_herrington_ – pictured here – and more. “[Carine Roitfeld] wanted me to feel sexy and she wanted me to be myself and feel it out on my own and do what I felt was right,” said Herrington, aka Miss October. #wwdeye
@saintrecords and @virgilabloh last night at @americanexpress’ “A Night With Success Makers” event. “I always bring it back to community because without that I wouldn’t have the courage,” said Knowles when asked how she has gotten where she is now. Read more highlights from their conversation on WWD.com. #wwdeye (📷: @lizdoupnik)
This Just In: Industry sources have told WWD that Anastasia Soare is rumored to be considering selling her beauty business, @anastasiabeverlyhills. According to those sources, Soare has tapped investment bank Imperial Capital to explore sale options for her eponymous beauty brand –– and with at least $340 million in net sales, this would be a big deal. Put in context of other recent transactions for makeup companies, Soare’s price tag could be in the billions if she were to sell the whole thing. #wwdnews #wwdbeauty (📷: @clint_spaulding)
@assouline’s latest book, “The Spirit of Bentley: Be Extraordinary” captures the adventurous attitudes and opulent lifestyles of @bentleymotors’ most creative owners and enthusiasts throughout the U.K. The 292-page hardcover has a section dedicated to showing its team of skilled artisans and photos of its most colorful owners, from George Bamford to designer @alicetemperley, pictured here by Aline Coquelle. #wwdeye
@google released its report on the most popular search terms this year. For fashion brands, the list was led by @gucci, the luxury brand that stunned the market last October when it pledged to stop using fur. Runner ups were @supremenewyork and @fashionnova, along with more established brands like @louisvuitton, @chanelofficial and @ysl. #wwdfashion (📷: @aitorrosasphoto)
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)