PARIS — Fragrance- and beauty-maker Groupe Bogart is building on its vertical integration strategy and will more than double its sales with the acquisition of the Distriplus Group, Belgium’s second-largest fragrance and cosmetics retailer.
The French group said Friday that it has signed an agreement to buy Distriplus’ share capital. Terms of the deal were not disclosed.
In the wake of the news, Groupe Bogart shares had shot up 19.5 percent, to 4.97 euros on the Paris bourse, by 3 p.m. CET. on Friday.
With its purchase of the Belgian seller, with 200 doors under the Planet Parfum and Di banners, Groupe Bogart will generate almost 200 million euros in additional revenues, causing its yearly sales to grow by 2.5 times to more than 300 million euros. The buy will also bring its store network count to 357 in four countries — France, Israel, Germany and Belgium.
Planet Parfum, which was founded 46 years ago, sells prestige fragrances, cosmetics and skin care through 81 doors. It represents approximately 30 percent of the Belgian selective retail market, according to Groupe Bogart.
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Di, with 119 doors in Belgium, was created in 1975 and is the country’s leading retailer of cosmetics.
Distriplus Group has 200 outlets in Belgium and Luxembourg, and its own logistics platform. At year-end 2017, it registered sales of 192 million euros and had 1,064 employees.
Groupe Bogart is banking on strong commercial synergies for its distribution business. It said it “will be able to step up the distribution of its own brands within this network, in both fragrance (own brands Jacques Bogart, Ted Lapidus, Carven and licensed brand Chevignon) and cosmetic and skin care products (own brands Méthode Jeanne Piaubert, Stendhal and the April cosmetics range). These brands will be progressively deployed throughout the network during 2019.”
The company said the acquisition is in line with its strategy to leverage its manufacturer-distributor double positioning and brand identity, which allows the company to operate on every step of the value chain.
Groupe Bogart dipped into retail two years ago, when it acquired the fragrance chain HC Parfumerie in Germany.
The deal with Distriplus Group is expected to close in the next few weeks.
Groupe Bogart posted sales of 129.7 million euros in 2017, up 22.6 percent versus 2016.