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LVMH Moët Hennessy Louis Vuitton-owned Sephora acquired a 45% stake in Russian perfumery chain Ile de Beauté. The deal also grants Sephora an option to become a majority stakeholder in the chain over time.
The transaction reportedly will enable Sephora to become a major player in the high-growth Russian market over the next few years, as Ile de Beauté is one of the leading distributors of perfume and cosmetics in Russia. This move is aligned with Sephora’s international strategy to expand into markets with strong potential.
Sephora currently has a franchising deal with Russian Alkor, but that agreement ends in 2010, while Ile de Beaute stores are concentrated in Russia’s larger towns.