Vladimir Babić sold his remaining ownership stake in the Iris Douglas perfumeries, making Douglas Germany the owner of 100 percent of the shares.
This purchase was anticipated in the original agreement from 2008, when Douglas acquired 51 percent of Iris, and now Douglas Germany has exercised its purchase right (call option), confirmed Martina Babić, CEO of Iris Douglas. The value of the transaction is a business secret.
After selling his remaining stake, Vladimir Babić is stepping down from the Supervisory Board of Iris Douglas and will continue to engage in the fashion and distribution business, which had operated together until the sale of the majority stake in the perfumeries. Martina Babić, his daughter, remains on the Management Board of Iris Douglas, where she has worked since 2008. Until then, the Iris group included Iris perfumery, fashion, and Laura cosmetics.
The development strategy outlined during the initial acquisition of 51 percent of Iris was that the two brands, Iris and Douglas, although managed from a single company based in Zagreb, would develop independently in both the Croatian market and the Southeast European market, which is in Douglas’s focus.
According to the strategy set at that time, retail locations smaller than 200 square meters will remain under the Iris brand, while larger stores, mostly in shopping centers, will open under the Douglas brand.
– The motivation for entering into a deal with Douglas was to ensure that Iris, after 16 years of successful development, remains large. We want to maintain a 40 percent market share in the perfumery segment, and if we achieve more with Douglas, we will be happy – said Vladimir Babić upon Douglas’s entry into the Croatian market.
According to Martina Babić, there will be no significant changes in the overall business and strategy of the company compared to the period before the sale of the entire ownership stake, and the current share of Iris and Douglas perfumeries in the Croatian market is estimated at 46 percent. Douglas is a German company operating in 23 European countries and the USA, generating revenues exceeding three billion euros, with the perfumery business being its strongest segment
