Elizabeth Arden To Buy Christina Aguilera Fragrance Range

Elizabeth Arden Inc. (NASDAQ:RDEN) is gearing up to boost its fragrance portfolio through strategic acquisitions of high-end brands.

The cosmetics maker has agreed to buy the Christina Aguilera fragrance business from Procter & Gamble International, a subsidiary of The Procter & Gamble Company (NYSE:PG).

Christina Aguilera, named after the renowned recording artist, introduced her first range of fragrances in 2007. The celebrity fragrance range boasts a significant presence in the U.K. The takeover is consistent with the acquisition strategy of Elizabeth Arden to expand its fragrance business globally.

Christina Aguilera is the second brand to be acquired by Elizabeth Arden in the high-end fragrance market. In May 2014, the company signed an exclusive agreement with Wildfox Couture to develop and market its own line of fragrance products.

Elizabeth Arden has made several strategic acquisitions to enhance its portfolio. In the past, the company had announced two buyouts, one in Jun 2012 and another in May 2012, when it acquired the global licenses and certain related assets for the Justin Bieber and Nicki Minaj fragrance brands from Give Back Brands.

Prestige fragrance market is expected to grow modestly and become more popular in 2016, as customers look for individuality instead of mass appeal products. Over the last few years, niche fragrances have been experiencing double-digit growth and have been the best performing category within the global prestige fragrance market. The company appears to have adopted the right strategy to tap into the prospects at this segment.

Elizabeth Arden carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader consumer discretionary sector include Carter's, Inc. (NYSE:CRI) , Michael Kors Holdings Limited (NYSE:KORS) and Prestige Brands Inc. (NYSE:PBH) , all holding a Zacks Rank #2 (Buy).