Bogart Group (Euronext Paris - Compartment B - FR0012872141 - JBOG) (“Bogart”), which specializes in the creation, manufacture and sale of luxury fragrances and cosmetics, has closed the acquisition of Distriplus, No. 2 distributor of fragrances and cosmetics in Belgium.
This business combination takes Bogart one step further in its plans to grow and develop its combined manufacturer-distributor business model.
A new structure generating turnover of over €300 million
The acquisition will add a further 200 stores (Belgium and Luxembourg) operating through two retail chains, Di and Planet Parfums, fully modernized thanks to extensive investments made by Distriplus over the past few years, to Bogart's existing network of 157 stores in France, Germany and Israel. It will also bring in additional turnover of around €200 million, which will allow Bogart to reach critical mass on the European fragrances and cosmetics market, more than doubling its current size.
The new structure will operate 357 stores across 5 countries (France, Israel, Germany, Belgium and Luxembourg) generating annual turnover of over €300 million.
Main terms of the acquisition
The deal involves Bogart acquiring all shares in Distriplus, which wholly owns at 100% the Di and Planet Parfums retail chains. The acquisition price has been calculated on a basis of a debt free cash free valuation.
This is an equity-financed acquisition.
Distriplus' current directors have resigned and therefore the acquisition has no impact on Bogart's governance, which remains unchanged.
The Distriplus group has posted positive EBITDA over the last few years but recorded a net loss in 2017 due to major provisions for impairment of intangible assets (goodwill).
The company will be consolidated in Bogart's financial statements from 1 November 2018. It is worth noting that the last two months of the year are an important and generally profit-making period for the Group (Christmas holidays).
Bogart Chairman and CEO officer David Konckier commented:
“We have been working hard for months on this deal and we are really happy to have closed the acquisition. This is a major milestone for our Group, which will upsize considerably by incorporating a chain of 200 stores and increasing its turnover by around €200 million. This major acquisition is a further illustration of our vertical integration manufacturer-distributor business model, which gives us independence and sets the Group apart from its competitors in the sector.
It is becoming increasingly obvious to us that vertical integration is a virtuous business model that will provide increased profitability both for our own brands and for the distribution network.
This profitability will safeguard our development and the quality of service provided to both our customers and our suppliers.”
Group website www.groupe-bogart.com
|BOGART GROUP||ACTUS finance & communication|
Tel: + 33 (0)1 53 77 55 55
|Anne-Pauline Petureaux |
Tel: + 33 (0)1 53 67 36 72
|Alexandra Prisa |
Tel: +33 (0)1 53 67 36 90
 See press release dated 12 October 2018