Estee Lauder said it’s in talks to buy Puig Brands in a deal that would create a cosmetics giant with about $20 billion in annual sales.
The companies declined to offer details on the terms. Puig, based in Spain, has a market value of about €9 billion ($10.4 billion).
A takeover of the Spanish company would give Estee Lauder such well-known perfume and fashion brands as Rabanne, Jean Paul Gaultier and Carolina Herrera, helping it compete better against the world’s largest cosmetics company, L’Oreal. For Puig, which generated about €5 billion in sales last year, the move follows slowing growth and downgrades of earnings estimates that have pulled down its stock since an initial public offering in 2024.
“The potential acquisition of Puig would veer Estee Lauder off course,” according to Barclays analysts led by Lauren R Lieberman, who said the Barcelona-based company didn’t fit with Estee Lauder’s reorganisation.
Source: Economic Times