B&S Group Reaches Agreement on Acquiring Majority Stake in US Leading Online Discount Retailer FragranceNet.com
DEER PARK, N.Y., August 28, 2018 (Newswire.com) - FragranceNet.com, Inc. (OTC: FGNT) (“FragranceNet.com” or the “Company”) today announced that it had entered into a definitive agreement, dated Aug. 27, 2018, with B&S Group S.A. (“B&S Group” or “Group”), pursuant to which an affiliate of B&S Group agreed to acquire a majority stake in FragranceNet.com (the “Transaction”).
The agreement to acquire FragranceNet.com, an online discount fragrance retailer established in the US in 1997 and primarily engaged in the sale of brand name perfumes and beauty products, will bring to B&S Group a powerful focus on marketing, procurement, logistics and a broad supplier base via automated procurement. FragranceNet.com’s proprietary technology will enable B&S Group to strengthen the Group’s sourcing network, buying power and assortment in its Health & Beauty category. The acquisition will allow B&S Group to generate a substantial footprint in North America and to roll out FragranceNet.com’s business model to other geographical areas.
Jason Apfel, President of FragranceNet.com, commented: “FragranceNet.com has become a leader in the industry in the United States. Working with a very diversified supplier base provides us the opportunity to offer a wide assortment to our continuously growing customer base. B&S Group will provide the opportunity of expanding our business model by utilizing the scale and sophisticated distribution structure of the Group.”
Bert Meulman, CEO of B&S Group, noted: “The acquisition of FragranceNet.com will be a significant step for the Group and underlines our strategy of value chain integration, further growing in our categories and expanding to new geographies. FragranceNet.com has a strong reputation as an online discount fragrance retailer which, combined with its customer base with a high retention rate, will significantly enhance our footprint in North America and accelerate our business going forward. By adding their knowledge and experience in online B2C retail to our distribution model, we further expand our role in the value chain.
"I am very pleased to be welcoming FragranceNet.com’s 250 employees and their strong management to the Group. As FragranceNet.com has been a long-standing business partner of ours, we are very familiar with both its business model and its management. This, together with our experience in gradually embedding an acquired business into our organization, makes me confident that together we will continue to deliver the highest value to our clients and all other stakeholders.”
Lazard Middle Market acted as financial advisor to FragranceNet.com. The Transaction is expected to close in the fourth quarter of 2018, subject to the satisfaction of the closing conditions set forth in the agreement, including US regulatory approval and other customary closing conditions.
Anke Bongers, Manager Investor Relations
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Visit our corporate website: www.bs-group-sa.com
Visit us at www.fragrancenet.com
FragranceNet.com is an online discount fragrance retailer, established in the US in 1997 and primarily engaged in the sale of brand name perfumes and beauty products. The Company brings a powerful focus on marketing, procurement and logistics and taps into an impressively broad supplier base via its automated procurement platform. This way of working allows the Company to deliver value to consumers by matching demand for discount fragrances and beauty products with efficiently procured supply.
About B&S Group
B&S Group is a global distribution partner for consumer goods in attractive channels and across specialized markets, such as Retail B2B (business-to-business), Maritime, Remote and Retail B2C (business-to-consumer). With a well-trained and experienced workforce of approximately 1,460 employees, the Group serves as a trusted and reliable partner to suppliers and customers, providing essential distribution services and solving their supply chain complexities. B&S Group operates a flexible, well invested and highly efficient distribution platform that comes with strong barriers to entry. Powered by high capacity warehouses and delivered with expertise in customs and compliance, the Group offers over 40,000 consumer goods to its customers in more than 100 countries.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain “forward-looking statements.” Words such as “believe(s),” “goal(s),” “target(s),” “estimate(s),” “anticipate(s),” “forecast(s),” “project(s),” “plan(s),” “intend(s),” “expect(s),” “might,” “may,” “could” and variations of such words and other words and expressions of similar meaning are intended to identify such forward-looking statements. Forward-looking statements are based on current expectations, intentions, beliefs or forecasts of future events or otherwise for the future, and can be identified by the fact that they relate to future actions, performance or results rather than relating strictly to historical or current facts. However, actual results may differ materially from expectations due to the risks, uncertainties and other factors that affect FragranceNet.com’s business. These factors include, among others:
· Failure to satisfy conditions to the closing of the Transaction;
· Risks relating to the value of the shares of the Company’s common stock;
· Legal proceedings that may be instituted against the Company following announcement of the proposed Transaction;
· The adverse effect on the business of the Company of uncertainty surrounding the Transaction; and
· Other risks to the consummation of the Transaction and the risk that the Transaction will not be consummated within the expected time period or at all.
The Company believes that the assumptions on which its forward-looking statements are based are reasonable. However, the Company cannot assure you that the actual results or developments it anticipates will be realized or, if realized, that they will have the expected effects on its business or operations. Forward-looking statements speak only as of the date of this press release. Except as required by applicable law or regulation, the Company undertakes no obligation to update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise.