Elizabeth Arden to Buy Christina Aguilera Fragrance Business
By Allison Collins
Elizabeth Arden Inc. is buying the Christina Aguilera fragrance business from Procter & Gamble as part of P&G?s plan to slim down its beauty portfolio.
Stifel analyst Mark Astrachan estimated the fragrance license had about $80 million in sales and $10 million in earnings before interest, taxes, depreciation and amortization in a January analyst note. The purchase price for the transaction was not disclosed.
?This stellar brand is one with a global footprint and a significant international presence in Europe,? said George Cleary, president of global fragrances at Arden. ?This acquisition is consistent with our strategy to acquire brands to grow our fragrance business on a global basis.?
?I really enjoy developing my fragrances and I am excited to continue the process with Elizabeth Arden,? Aguilera said in a statement. ?Their commitment to creating fragrances is important to me and I know they will do a great job helping me deliver top-quality product to my fans.? She has seven fragrances, according to the business? web site.
Arden?s other celebrity fragrances include Taylor Swift, Nicki Minaj, Mariah Carey and Justin Bieber. The company?s fragrance sales, which grew by 3 percent in the latest quarter, were pushed by John Varvatos and Juicy Couture. For the quarter, Arden had a $27.7 million net loss.
Overall, the celebrity fragrance category has not fared well in recent years ? dropping to about 2 percent of the prestige fragrance market in 2014, from 4 percent in 2011, according to figures from The NPD Group.
Christina Aguilera Perfumes was originally part of the beauty brand package that P&G agreed to sell Coty ? but along with Dolce & Gabbana, Christina Aguilera dropped out of the deal.
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