The activities — including Mugler, Thierry Mugler (fashion), Clarins Fragrance Group (or CFG), CFG France, Cosmeurop and CFG U.K. — generated about 340 million euros of sales last year, L’Oréal and Groupe Clarins said on Monday after the close of the Paris bourse.
Financial terms of the deal, which should be complete in the first quarter of 2020, were not disclosed.
In early July, it was announced that the world’s largest beauty company was in exclusive talks to acquire the Mugler fashion and fragrance brand, and the Azzaro fragrance brand and accessories.
The sale will mark Groupe Clarins’ exit from the perfume and ready-to-wear markets, so it can focus on skin care.
Mugler’s portfolio of perfumes includes the blockbuster Angel women’s scent, which pioneered the gourmand olfactive family when it launched in 1992, and Alien, that’s now an even a bigger bestseller. Azzaro — whose fragrance activity joined Groupe Clarins in 1995 — boasts classics such as Azzaro Pour Homme and Chrome, and Wanted and Wanted Girl, targeting younger consumers.
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The Azzaro fashion business is run separately, by Reig Capital Group, and was not part of the discussions.
L’Oréal has been building up its luxury fragrance portfolio, most recently with the acquisition of Valentino’s perfume license, effective Jan. 1. The company in spring 2018 renewed its Giorgio Armani fragrance and beauty license until 2050, and the group is believed to be next in line to snap up the Prada fragrance and beauty license, currently held by Puig.
The L’Oréal Luxe division, which includes fragrance licenses for Yves Saint Laurent, Giorgio Armani and Maison Margiela, has been a long-standing engine of the group’s strong sales, which in the first half of 2019 gained 10.6 percent in reported terms to 14.81 billion euros. Sales at L’Oréal Luxe in the period advanced 17.3 percent, making it the fastest-growing branch of the company.
L’Oréal was overtaken by Coty as the world’s global premium fragrance player in 2016, when it acquired from Procter & Gamble luxury perfume license such as Hugo Boss and Gucci.
With the purchase of Mugler, L’Oréal will be dipping back into fashion after almost two decades out of the game. It had for many years in its portfolio Lanvin fashion and fragrance, which it sold in 2001 to a group of investors led by Shaw-Lan Wang.