GROUPE BOGART : BOGART GROUP RAMPS UP ITS VERTICAL INTEGRATION STRATEGY THROUGH ITS PLAN TO ACQUIRE A KEY FRAGRANCE AND COSMETICS RETAILER IN BELGIUM (AcT)

• 200 new points of sale under two brands, Planet Parfum and Di
• Almost €200 million in additional turnover, which will see the Bogart Group more than double in size (2.5x)
• Significant growth expected to be driven by the virtuous integration strategy of Bogart Group brands in the network

Bogart Group (Euronext Paris - Compartment B - FR0012872141 - JBOG), which specializes in the creation, manufacture and sale of luxury fragrances and cosmetics, has announced the signing of an agreement to acquire the entire share capital of the Distriplus Group, the No. 2 fragrance and cosmetics retailer in Belgium. The acquisition remains subject to the fulfilment of conditions precedent. The definitive terms of the transaction will be published upon closing of the acquisition, scheduled to take place within the next few weeks.

Distriplus, a leading retailer in Belgium with a network of 200 sales outlets

The Distriplus Group is a major fragrance and cosmetics retailer in Belgium. Fully independent, the Group operates in Belgium via two brands that complement one another on the market:

• Planet Parfum, with 46 years' experience in selective retail and an extensive range of fragrances, cosmetics and skincare products, with an existing network of 81 sales outlets. This brand represents around 30% of the Belgian selective retail market.
• Di, created in 1975 and leading seller of cosmetic products in Belgium with a network of 119 sales outlets.

In total, the Distriplus Group has 200 sales outlets in Belgium and Luxembourg. It also has its own logistics platform.

At 2017 year-end, the company had 1,064 employees and posted turnover of €192 million.

A more than two-fold increase in size for the Bogart Group

Through this merger, the Bogart Group will integrate a dense and evenly distributed network of 200 new, fully modernised sales outlets throughout Belgium, with highly-reputable brands.

Once the acquisition is complete, the Bogart Group will have a network of 357 stores in 4 countries (France, Israel, Germany and Belgium) generating consolidated turnover of more than €300 million.

A vertical integration strategy rolled out in four countries - Establishing a virtuous manufacture-distribution cycle

In addition to the Group's significant change in scope, this acquisition will provide strong commercial synergies for the Distribution business. The Bogart Group will be able to step up the distribution of its own brands within this network, in both fragrance (own brands Jacques Bogart, Ted Lapidus, Carven and licensed brand Chevignon) and cosmetic and skin care products (own brands Méthode Jeanne Piaubert, Stendhal and the April cosmetics range). These brands will be progressively deployed throughout the network during 2019.

This acquisition is perfectly in line with the Bogart Group's strategy to capitalise on its double positioning and brand identity as a manufacturer-distributor, which enables it to operate along all stages of the value chain. Building on the success of the acquisition of the fragrance chain HC Parfumerie in Germany two years ago, the Bogart Group has reaffirmed its virtuous strategy and is opening its horizons to a new high-potential market.

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Source : Actusnews