Tuesday, January 22, 2008
Project for strategic agreement between PPR and L’Oréal regarding YSL Beauté
PPR announces that it has received a firm offer from L’Oréal for YSL Beauté pursuant to which:
- the use of the Yves Saint Laurent and Boucheron brands in the field of fragrances and cosmetics would be entrusted to L’Oréal in the form of a very long-term exclusive worldwide license, under market conditions;
- licenses for fragrances and cosmetics of the Stella McCartney, Oscar de la Renta and Ermenegildo Zegna brands would be transferred to L’Oréal;
- and the shares of YSL Beauté Group including its Roger & Gallet subsidiary would be sold to L’Oréal at a price reflecting an enterprise value of €1,150 million.
The Yves Saint Laurent, Boucheron and Stella McCartney brands remain the property of the PPR Group.
On the basis of this offer, PPR has entered exclusive negotiations with L’Oréal in view of carrying out this transaction.
François-Henri Pinault, PPR Chairman & CEO, said: “With this strategic agreement with the world leader in cosmetics, Gucci Group gives YSL Beauté the opportunity to take full advantage of its upside potential. It also enables the Yves Saint Laurent brand, in the field of beauty, to fully align its ambition with its worldwide reputation. Yves Saint Laurent would thus boost its position as a great luxury brand. With its expertise and knowledge of international markets, L’Oréal would be able to continue and step up the work already achieved to date. L’Oréal would also offer a unique development platform for the Roger & Gallet, Boucheron, Stella Mc Cartney, Oscar de la Renta and Zegna brands. With this projected agreement, PPR reasserts its ambition to bolster the development of the Gucci Group’s brands.”
Jean-Paul Agon, L’Oréal’s CEO, stated: “This proposed agreement represents a great opportunity for L’Oréal and its Luxury Products Division. Yves Saint Laurent is a mythical French luxury brand.It is admired the world over and is particularly complementary with our current brands. We are convinced that its integration into our Luxury Products Division would speed up its development. This strategic agreement will reinforce our position in the luxury cosmetics market”.
Robert Polet, Gucci Group CEO, said: "This agreement would be key for Yves Saint Laurent. The strength and expertise of L’Oréal would put the further development of the brand on a faster track. The collaboration between L’Oréal and Yves Saint Laurent Couture would comfort the consistency of the Yves Saint Laurent brand image”.
The transaction should be signed in the next weeks, following consultation of personnel representative bodies, and will be submitted to the approval of competition authorities.
PPR develops a portfolio of high-growth global brands. The Group is present in 75 countries with approximately 78,000 employees. Through its retail businesses Redcats Group, Fnac, Conforama and CFAO, and the Luxury brands of Gucci Group (Gucci, Bottega Veneta, Yves Saint Laurent, YSL Beauté, Balenciaga, Boucheron, Sergio Rossi, Alexander McQueen and Stella McCartney), PPR generated sales of EUR 17.9 billion in 2006. In 2007, PPR acquired a majority interest in Puma. PPR shares are listed on Euronext Paris (# 121485, PRTP.PA, PPFP). For more information: www.ppr.com