In Brief: Sanofi divesting Nina Ricci
This article was originally published in The Rose Sheet
Executive Summary
Sanofi divesting Nina Ricci: Sale of the fragrance and fashion house expected to be completed by the end of the year. Under a contract between the two companies, Sanofi is required to purchase a 100% interest in Nina Ricci before the end of 1997, unless it can first divest its stake. Sanofi holds a 57% interest in Ricci and commands 49% of the firm's voting power. Explaining the upcoming sale, the Paris-based company said Ricci sales have not been in line with expectations. Sanofi confirmed that one interested party in the deal is Barcelona-based Antonio Puig S.A., the privately owned parent of the Paco Rabanne fragrances and designer label. At a Nov. 20 meeting with securities analysts, Sanofi projected sales for the beauty business worldwide would total roughly $690 mil. The Nina Ricci business is expected to generate approximately $173 mil. of that total, and Yves Rocher, in which Sanofi also holds a partial stake, is predicted to bring in revenues of just under $3 mil....