Estée Lauder in Talks to Acquire Spain’s Puig to Create Global Beauty Giant
Target company has a market value of about $10 billion, with brands including Carolina Herrera and Charlotte Tilbury
Estée Lauder confirmed the discussions Monday, following a report by The Wall Street Journal. The talks are continuing, and there is no guarantee an agreement will be reached, the company said.
The companies have discussed a combination involving a mix of cash and stock, people familiar with the matter said. Other details surrounding the discussions couldn’t be learned.
Puig is based in Barcelona and has a market value of about $10 billion. The company went public in 2024 and its shares have significantly underperformed since then, in part because of sluggish fragrance demand.
The context
A deal would further expand Estée Lauder’s sprawling portfolio, which includes Clinique, M.A.C, Bobbi Brown Cosmetics and Le Labo. It would also help cement the family-controlled business as a leader in the so-called prestige beauty category.
Puig, which is also still family-controlled, sells perfume, fashion, makeup and skin-care products, from brands including Carolina Herrera, Charlotte Tilbury, Byredo and Dr. Barbara Sturm.
Estée Lauder has a market value of more than $30 billion. The company in late 2022 struck a roughly $2.8 billion deal for Tom Ford, which at the time marked its biggest acquisition ever.
Estée Lauder has been undergoing a multiyear turnaround to expand market share and win over younger consumers with newer brands.
Great, more brands to add to the boycott list.
by Lili666999