US-based Nimbus, which specialises in licensing and developing cosmetic and fragrance products worldwide, says it intends to take a 51 per cent stake in Fragex for 1.155 million shares of Nimbus' restricted common stock, approximately 15 per cent of the outstanding shares of Nimbus.
Fragex, specialises in developing cosmetics and fragrances for major brand names in Europe and Asia. Fragex, in business since 2000, had sales of €2.4 million in 2003 and owns proprietary designs for personal care products including unique glass and plastic moulds for fragrances.
Patrice Henry, managing director of Fragex will continue to head the operation in Paris.
"Over the years, Fragex has succeeded in building a strong base of customers that utilise our resources to deliver a turnkey product," Henry said. "We have created a one-of-a-kind niche in a growing industry by facilitating the creation of brand-name cosmetics and fragrances without the client having to invest large capital normally associated with such development costs."
Lucien Lallouz, president and CEO of Nimbus Group, said: "The acquisition of Fragex will give Nimbus the correct combination of personnel, and assets which will enable us to meet the qualification standards of listing on the American Stock Exchange earlier than planned."