UPDATE: Hermes Sells 45% Stake In Jean Paul Gaultier To Grupo Puig

French luxury-goods company Hermes International SCA (RMS.FR) said Tuesday it has sold its 45% stake in fashion label Jean-Paul Gaultier for EUR16 million to Spain's Grupo Puig, which will become the majority shareholder of the business.

The proceeds from the sale, together with the repayment of EUR14 million worth of granted loans, will generate an accounting profit of EUR30 million for Hermes, the company said.

Designer Jean-Paul Gaultier currently owns 55% of the fashion house, which he founded in 1976. Jean-Paul Gaultier has a haute-couture business as well as perfume, licensed to Beaute Prestige International, a subsidiary of Japan-based Shiseido Co. (4911.TO).

Spokeswomen for Gaultier and Puig confirmed that the Spanish company will take control of the fashion label but didn't provide details on the amount of shares the designer is relinquishing to Puig.

According to press reports, Gaultier was expected to cede 10% of his stake to Puig.

As part of the deal, the designer will continue to take responsibility for the creative activities and image of the company which bears his name.

Gaultier stepped down as artistic director of Hermes's womenswear in May 2010. Manuel Puig, vice chairman of Puig, will become president of the Jean Paul Gaultier fashion house.

Based in Barcelona, Spain, family-owned perfume maker Puig already owns the Nina Ricci, Paco Rabanne and Carolina Herrera luxury brands.

"I am convinced that the alliance between Jean Paul Gaultier and the Puig family will take the house to new highs," Hermes Chief Executive Patrick Thomas said in a statement.

-By Elena Berton, Dow Jones Newswires; [phone]; [e-mail]