LVMH Moet Hennessy Louis Vuitton, the French luxury goods giant, reported that it had made an acquisition investment for a controlling stake in Sack’s. The investment deal will see the French luxury goods giant acquire a 70% controlling stake in the Brazilian firm, Sack’s, the online beauty retailer. LVMH Moet Hennessy Louis Vuitton hopes the acquisition investment will help it expand its Sephora subsidiary into Brazil.

 

Sack’s is a leading online Brazilian retailer of fragrances, cosmetics and toiletries and as well one of the major companies in the specialty beauty distribution sector in Brazil, Latin America’s biggest economy. The Sack’s acquisition investment now marks Sephora’s entry into Brazilian perfumes and cosmetics market, considered one of the biggest and fastest growing in the world. It is expected to help Sephora, a subsidiary of LVMH Moet Hennessy Louis Vuitton, develop its Brazilian platform, online and in its stores over time.

 

Sephora is a leading, major beauty retailer in the US and brings with it, its experience from its businesses in the international markets and online beauty retailing that is hoped to enable Sack’s grow its business and expand its presence amongst Brazilian beauty customers. Sack’s was began in 2000 and has developed more than 270 brands with a client base of over 830,000 customers.

 

According to statistics, its one of the top three most frequently visited pure play e-commerce sites in Brazil with four million unique visitors every month.  Sack’s co-founder and CEO, Carlos Andre Montenegro, reiterated that being acquired by LVMH and Sephora is an exceptional confirmation of the company’s great success and opportunities for vital, continuing growth. Sack’s looks forward to gaining immensely from Sephora’s global beauty industry know-how and enhance the experience Sack’s offers, thus continue realizing its considerable potential as it commences a new beginning, said Montenegro.

 

The deal allows Montenegro and his partners, Albatroz Participações and Marcelo Franco, to continue holding a 30% stake in Sack’s. The current management team, led by Montenegro, will remain in place and Sack’s will still be based in Rio de Janeiro. LVMH Group managing director, Antonio Belloni, said Carlos André and his partners had developed a great, profitable, business with true entrepreneurial spirit.

 

LVMH is proud to join them and contribute to the next phase of Sack’s development, he added, given the fact that, Brazil and, to a larger extent, South America are very promising countries for luxury goods with regard to their growth and market size.

 

3 July 2010.