PARIS and RIO DE JANEIRO Luxury products group LVMH Moet Hennessy Louis Vuitton has inked a deal to acquire a controlling stake in Brazilian online specialty beauty retailer Sack's, and plans to expand Sephora into the Brazilian perfumes and cosmetics market.
Terms of the deal were not disclosed. LVMH, which owns Sephora, reached a deal to acquire a 70%, controlling stake in Sack's, which carries more than 270 brands and boasts four million unique visitors each month. Carlos Andre Montenegro, co-founder and CEO of Sack's, and his partners Albatroz Participacoes and Marcelo Franco, will continue to hold a 30% stake in Sack's.
The transaction will enable Sephora to develop its platform, online and over time in stores. Sephora will bring its experience, acquired in international markets and online beauty retailing, to help develop Sack?s business and increase its penetration among Brazilian beauty shoppers.
Sack's current management team, led by Montenegro, will remain in place and Sack's will continue to be based in Rio de Janeiro.