French private equity firm Eurazeo is selling its minority stake in Paris-based luxury fragrance house Ex Nihilo to L Catterton, the LVMH-linked consumer-focused investment firm. The deal marks Eurazeo's exit from the niche perfume sector and signals continued consolidation in luxury lifestyle brands.

Ex Nihilo, founded in 2015, built a reputation for ultra-premium, customizable fragrances sold through exclusive retail channels. Eurazeo first invested in 2018, helping the brand expand globally and enter key markets like the U.S. The fragrance house has attracted celebrity clientele and high-end department store placements.

L Catterton's acquisition strengthens its portfolio in the luxury goods space. The firm, backed by LVMH and Arnault family vehicles, has actively targeted premium lifestyle assets. Terms weren't disclosed, but Ex Nihilo's strong margins and brand positioning likely commanded a premium in the deal process.

Industry observers expect further private equity activity in luxury fragrances as consolidation accelerates. Buyers see opportunity in niche brands with strong digital footprints and affluent customer bases. Ex Nihilo's transaction could prompt similar exits across the sector.