Originally Shiseido had planned to end its ownership on June 30, 2016, but talks have opened up to bring forward the acquisition to 1 January 2016.
The license includes intellectual property rights of Jean Paul Gaultier regarding fragrance products and its business, the sale of which has been priced at €70 million.
“When Shiseido and Puig shall agree on the terms of the sale, and when the BPI work council consultation is completed, in accordance with French labor law, Shiseido will enter into an agreement with regard to the sale, targeting to transfer in January 2016,” says a Shiseido statement on the negotiations.
In the statement, a potential figure of €20 million compensation is stated to be paid by Puig for the early termination of the license, with certain conditions to be agreed upon by both parties to smooth the transition.
Timeline
Jean Paul Gaultier fragrances are distributed in more than 110 countries, with products Le Male and Classique holding top rankings in several European markets.
BPI has developed and distributed the brand’s fragrance products since 1991 under a license agreement for class 3 products, which is due to end in June 2016, as mentioned.
Puig became the majority shareholder of the Fashion House Jean Paul Gaultier in 2011 and now wants to capitalize further on its ownership by developing and selling the brand’s fragrance on its own, hence the negotiation regarding the transfer of IP rights began.
Puig is a third-generation family-owned fashion and fragrance business based in Barcelona, which owns a number of brands such as Carolina Herrera, Nina Ricci, Paco Rabanne, Penhaligon's and L'Artisan Parfumeur, as well as licenses such as Prada, Valentino and Comme des Garçons, and celebrity fragrances.
The company’s strong performance has resulted in substantial growth and revenues of € 1.49 billion in 2013 and its products are sold in more than 140 countries.