PARISShiseido said Thursday it has begun negotiations with Puig to sell the intellectual property rights of Jean Paul Gaultier fragrance products and its business that Beauté Prestige International (BPI), a subsidiary of the Japanese beauty giant, has been managing.

The aim is for the transfer to take place in early January 2016.

BPI has developed and distributed Gaultier fragrance products since 1991 under a license that was due to come to term in June 2016. If its transfer is completed by early January 2016, it will be against an early termination compensation.

Puig, which became the majority shareholder of Gaultier’s fashion house in 2011, plans to manage the label’s fragrance business itself.

According to Shiseido, the total book value of properties and assets to be transferred is less than 30,000 euros, or $34,294 at current exchange.

Subject to work council consultation are the transfer price, with the IP rights valued at 69 million euros, or $78.9 million; shares at 1 million euros, or $1.1 million, and an extra bonus, whose maximum is 20 million euros, or $22.9 million.

The transfer would be done in cash between BPI and Puig.

“The financial impact of this transaction cannot be reasonably estimated at this point, because, in accordance with French labor law, its terms and conditions will be subject to the completion of the BPI work council consultation process,” stated Shiseido.

“BPI has been successfully strengthening its fragrance business since 2011, when Puig became the major shareholder of the fashion house Jean Paul Gaultier,” the company said. “BPI will keep on doing so by investing in its existing brand portfolio Issey Myake, Narciso Rodriguez and Elie Saab. In addition, BPI has been and will be actively pursuing new business opportunities, such as the license agreement with — among others — Azzedine Alaïa and Zadig & Voltaire.

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