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Inter Parfums (IPAR) Finalizes Licensing Deal With Ferragamo

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Acquisitions and strategic partnerships have been helping Inter Parfums, Inc. (IPAR - Free Report) to boost its portfolio strength and capture greater market strength. In latest developments, the well-known fragrance manufacturing company has finalized the agreement with Salvatore Ferragamo S.p.A. Per the agreement, Inter Parfums now holds the exclusive worldwide license for the production and distribution of Salvatore Ferragamo brand perfumes. Let’s take a closer look at this latest development and some other growth efforts being undertaken by the company.

Ferragamo is a Prudent Inclusion to Portfolio

Salvatore Ferragamo S.p.A. is the parent company of the Salvatore Ferragamo Group, which is among the world's leading luxury companies. Through the addition of the Ferragamo brand, Inter Parfums will be able to further develop its business in the world of fashion and luxury. This well-known luxury brand coupled with Inter Parfums’ creativity, competence and commercial expertise is likely to bolster growth across the fragrance market.

The license will be valid for a term of 10 years, including a five-year optional term and is subject to certain conditions. Considering the management and coordination of activities with respect to this license agreement, Inter Parfums will operate the Ferragamo fragrance business via a wholly-owned Italian company in Florence.
Through the acquisition of the Ferragamo brand license, Inter Parfums will be able to bolster its footing in Italy. Management highlighted that Salvatore Ferragamo will be among the five largest brands of the company’s portfolio.

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Prudent Efforts to Boost Portfolio

Speaking of acquisitions and agreements to boost business, Inter Parfums recently entered into a long-term global licensing agreement with G-III Apparel Group, Ltd. (GIII - Free Report) — to create, develop as well as distribute fragrances and related items under well-known brands like DKNY and Donna Karan. The license is likely to come into effect on Jul 1, 2022 for Inter Parfums. Management intends to roll out new fragrances under DKNY and Donna Karan brands during 2023. Last year, Inter Parfums’ majorly-owned subsidiary — Interparfums SA — acquired 25% of Divabox’s capital. Divabox is the owner of Origines-parfums, which is a renowned French company in the online beauty market. Prior to this, the company signed an agreement with renowned luxury brand — MonclerSpA.

Inter Parfums has also been undertaking efforts to roll out new product including Alibi for Oscar de la Renta, Bella Vita for GUESS, I Want Choo for Jimmy Choo, Coach Sunset Dreams, the Kate Spade signature scent among others. The company recently debuted Effect, which is a full suite of men’s grooming and fragrance products, under the GUESS brand.

Inter Parfums well-chalked endeavors keep it well-placed for growth in the cosmetics industry. Shares of this Zacks Rank #3 (Hold) company have increased 8.5% in the past three months against the industry’s decline of 9.1%.

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