French producer and retailer of luxury goods, LVMH, would have signed deal to buy 50% of Edinaya Evropa, the owner of Russian perfumery chain stores Ile de Beauté. According to reports published in today’s edition of Kommersant, Russia’s business daily newspaper, the deal would also allow Ile de Beauté to replace L’Etoile, another Russian retailer, as franchiser of LVMH’s Sephora perfume and cosmetics brand.
Edinaya Evropa runs 103 cosmetics stores across Russia. Its earnings in 2007 stood at about USD 280 million. It was Russia’s third largest distributor after L’Etoile with annual earnings of USD 760 million, and Arbat Prestige (USD 530 million) in 2007.
