Inter Parfums executives said the company expects the agreement to close in the first quarter, subject to certain due diligence procedures.
The letter of intent cites a provision for a follow-on cash infusion by Inter Parfums SA of $3.7 million, which would be used to expand Nickel spa locations and increase Inter Parfums SA’s ownership to 74%. Additionally, minority shareholders would have the right to sell their remaining interest in Nickel to Inter Parfums SA between Jan. 2007 and June 2007.
Nickel maintains spas focused exclusively on male consumers and skin care products for men. For the 12 months ending March 2004, Nickel executives forecasted sales of almost $6.1 million, a 50% increase from the previous year’s period. After the acquisition is finalized, founder Philippe Dumont will continue as president of Nickel, company executives noted.