Allou
This article was originally published in The Rose Sheet
Executive Summary
Acquisition of distributor Direct Fragrances expands Allou's distribution reach to 20,000 independent retailers. The cash deal, which is cash-flow positive and anti-dilutive, provides Allou with an additional $8 mil. in revenues, the company said. Under the agreement, announced June 24, Direct Fragrances will operate as a wholly owned subsidiary with most of management remaining in place. For fiscal 1998 (ended March 31), Allou reported a sales increase of 5.8% to $301.8 mil., and a net income gain of 5.5% to $4.3 mil. The firm's Internet retailing business, The Fragrance Counter, had $900,000 in revenues during the year, with 2 mil. visitors to the site, Allou said. The distributor noted the new agreements with America On-Line, Excite, Lycos and Yahoo should increase the number of visitors to the Web site to 14 mil...