The Wall Street Journal-20080124-L-Oreal Is in Talks to Buy PPR Unit

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L'Oreal Is in Talks to Buy PPR Unit

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French cosmetics giant L'Oreal SA said it made an offer to retail and luxury company PPR SA for its cosmetics division, YSL Beaute, for an enterprise value of 1.15 billion euros ($1.68 billion).

L'Oreal said it entered exclusive negotiations with PPR for the purchase of the activity that PPR has worked to turn around.

The deal will include a long-term license agreement for the fragrance and cosmetics brands Yves Saint Laurent and Boucheron, which will remain the property of PPR.

Licenses for Stella McCartney, Oscar de la Renta and Ermenegildo Zegna fragrance and cosmetics brands will be transferred to L'Oreal.