Burberry will pay 181 euros ($221.5 million at current exchange rates) to buy out the license rights for its fragrance and beauty products from Inter Parfums SA, effective Dec. 31.
"To maintain flexibility in pursuing its objective to develop fully this business in the future, Burberry has served notice of its intention to terminate the license agreement with effect from December 31, 2012," Burberry stated.
The two companies had been in talks since December 2011 about establishing a new operating structure for the Burberry beauty business. Burberry had until July 31 to determine whether it wished to buy out the unexpired portion of the license or continue the existing license, which runs through Dec. 31, 2017.
Inter Parfums acquired the Burberry fragrance license in 1993. Its most recent major introduction to the franchise was the Burberry Body scent line, which came out worldwide on Sept. 1, 2011.