Parlux said it acquired the rights to manufacture and distribute the fragrance lines from Victory International, which owns the US-based XOXO retailer.
The XOXO fragrance is due to be re-launched in the beginning of February in major US department stores, with an international roll out shortly thereafter. Parlux said that inancial terms of the agreement would not be disclosed.
Ilia Lekach, Chairman and CEO of Parlux called it a synergistic acquisition, adding that it would compliment the recent successful introduction of the Paris Hilton fragrance in the US.
"XOXO will increase our presence in department and specialty stores and provide us with important economies of scale." Lekach said, "I am pleased that we were able to fund this transaction entirely from our own cash reserves without the need to utilise our existing credit facility."
Parlux Fragrances, is a manufacturer and international distributor of prestige fragrances and has built an increasingly successful business portfolio through a series of brand association deals with high profile stars of both the acting and sporting world, as well as with a number of fashion houses.
As well as Paris Hilton, Parlux holds the licenses to manufacture and distribute the designer fragrance brands of Perry Ellis, Ocean Pacific, GUESS, Paris Hilton, Maria Sharapova, Andy Roddick, and Fred Hayman Beverly Hills.
Florida-based Parlux signed up fashionists and celebrity Paris Hilton to promote its fragrance brand in June of last year. By October the company was reporting that the successful launch had already had a positive impact on its financial performance and it doubled the number of retail outlets where the fragrance is available.
In November, the company announced third quarter sales were up 12 per cent to $18.25 million (€13.81m), with profits up 69 per cent to $2.37 million, results that were said to be strongly influenced by sales of the Paris Hilton fragrance.