Is Clarins on the block?
Friday, March 30th, 2007With the passing of Jacques Courtin-Clarins, the 86-year old founder of Clarins, there are questions whether a suitor will take the firm out. Years back, there was discussion that inheritance issues would leave the firm vulnerable. Some sources now say that issue was addressed.
But why a week prior to Courtin-Clarins’ death did the company change its ownership arrangement with L’Occitane? At the same time, the $1.2 billion firm announced it would pursue a search for acquisitions, which seemed more than coincidental in hindsight that the news preceded the founder’s death by less than a week.
Years back the suitor for Clarins, most assumed would be L’Oreal. But Jean-Paul Agon, L’Oreal CEO, has bolstered the firm’s natural product arsenal, and the fit does not seem as tight as it could have been in the 1980s or 1990s.
Estee Lauder might show some interest, as Origins appears to be slipping. Also, the European portion of Clarins would fit nicely into Lauder, and the company’s two group presidents, Philip Shearer and Patrick Bousquet-Chavanne, could easily assume leadership roles if a merger is contemplated.
Two dark horses in a potential Clarins derby are Shiseido and Limited Brands. Shiseido’s fragrance division in Paris would find Thierry Mugler and Azzaro a good fit. Moreover, Clarins’ R&D and French positioning could be strengthened in Asia by Shiseido. Shiseido U.S. president Heidi Manheimer could also bring back the brand in this market.
Limited tried to buy L’Occitane several years ago. The offer was rejected. Instead, L’Occitante developed Le Couvnet Des Minimes for Bath & Body Works. Couvent will now be sold to department stores, breaking BBW’s exclusivity. A working relationship with Clarins could redress BBW’s apothecary position with C.O. Bigelow that is not doing well.