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Since December 2011, Inter Parfums, Inc. and Burberry have been engaged in discussions on the creation of a new operating model for the business. Although an agreement has been reached on certain main terms and conditions, important points remain to be finalized.
To preserve its rights under the agreement, Burberry has exercised its option to buy out the license rights effective Dec. 31, 2012. Under the terms of the agreement, the buyout price amounts to €181 million.
However, the two parties are continuing their discussions on these important points in an effort to reach a new comprehensive agreement. If no new comprehensive agreement is reached, then the current license will end on Dec. 31, 2012.
Jean Madar, chairman and CEO of Inter Parfums, commented, “Discussions longer and more complex than expected have naturally led Burberry to exercise its option to buy out the license agreement before the July 31 deadline to ensure its ability to benefit from all possible alternatives. On our side, we have largely anticipated the consequences of this partnership being extended or not. For that reason, we are today particularly confident and motivated about the prospects of opening a new page in our history, regardless of the outcome of these discussions.”