Majority stake in FragranceNet.com acquired by unit of B&S Group
Workers at FragranceNet.com, which has 250 employees, at the company's Deer Park headquarters in 2014. Credit: Newsday/John Paraskevas
An affiliate of a global distribution company based in Luxembourg and Dordrecht, the Netherlands, has acquired a majority stake in FragranceNet.com Inc., a Deer Park-based online retailer of perfume and beauty products.
Financial details of the investment by the unit of B & S Group were not disclosed in the announcement Tuesday.
Shares of FragranceNet.com Inc. closed down 5.9 percent to $4.00 on Wednesday, giving the company a market capitalization of about $70 million. The stock was trading at $2.90 a year ago.
The news release said the acquisition of FragranceNet.com "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."
Calls and emails to FragranceNet.com, which has 250 employees, and B & S Group were not immediately returned.
Jason Apfel, president of FragranceNet.com, said in the news release B & S will provide "the opportunity of expanding our business model."
Bert Meulman, chief executive of B & S Group, said the deal "underlines our strategy of value chain integration."
The deal is expected to close in the fourth quarter of 2018.
B & S distributes liquors, perfumes, cosmetics, food, beverages and electronics in Europe, the Middle East and Central Asia, according to its website.
Lazard Middle Market served as financial adviser to FragranceNet.com.
Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.