Puig negotiates its merger with the wonder big Estée Lauder | Companies | EUROtoday

Puig, the Catalan firm specialised in cosmetics and perfumes, is in negotiations with Estée Lauder for a possible merger, as acknowledged by the National Securities Market Commission (CNMV).

“Puig confirms that it is holding talks about a possible business combination with The Estée Lauder,” says the corporate, proprietor of manufacturers akin to Carolina Herrera, Jean Paul Gaultier or Rabanne, within the info despatched to the markets supervisor. The identical, he provides, “would imply the potential merger of the business of both companies. No final decision has been made nor any agreement reached. As long as there is no agreement, it cannot be guaranteed that there can be an operation or its terms,” ​​the assertion closes.

As it has progressed The Wall Street Journalthe operation, which might result in the creation of a beauty big with greater than 15 billion euros in gross sales, is negotiated underneath a mix of money and Estée Lauder shares. The American firm has additionally launched a communication to the market in the identical phrases as Puig, talking of a possible “business combination” and a “merger”, and never a easy acquisition of the Catalan agency.

Estée Lauder, which is listed on the New York Stock Exchange, fell 8% after studying of the potential operation. This is way bigger than Puig: its inventory market worth is near 30 billion {dollars}, whereas that of the Catalan firm was under 9 billion on the shut of the inventory market session this Monday. In the identical, its shares have risen 3.6%. Puig debuted on the Spanish inventory market in May 2024 at a worth of 24.5 euros per share, a worth that has fallen 36% to the 15.37 euros it marked this Monday.

In phrases of enterprise, whereas Puig ended the 2025 monetary yr with gross sales of 5,042 million euros, the Estée Lauder group virtually tripled that determine: in its final full fiscal yr it recorded gross sales of 14,326 million {dollars}, about 12,336 million euros on the present change price.

However, the American firm has been experiencing sure difficulties in its enterprise for a while: in that final yr, it recorded a internet lack of 1,133 million {dollars}, and reported billing was 8.2% decrease than the earlier yr. At the top of 2023, a two-year restructuring program started to rebuild eroded margins after the disaster brought on by the pandemic, with a layoff plan for 7,000 staff.

A program that was prolonged in February of final yr. The aim, the corporate stated, was to “further transform the company’s operating model, in order to fund the recovery of sales growth and reestablish a strong double-digit adjusted operating margin in the coming years.” The group’s worth has improved greater than 17% within the final yr, though it’s virtually 80% under the highs it reached in 2021. Its principal shareholders are the Vanguard funds (11.3%), Fidelity (6.6%) and BlackRock (5.5%).

At the top of the second quarter of the 2025-2026 monetary yr, which can finish on June 30, its gross sales grew by 6%, with a related enchancment additionally in its working outcome, constructive by 401 million {dollars}. As a results of its higher efficiency, the corporate improved its forecasts for the top of the yr, confirming its intention to enhance its working margins for the primary time within the final 4 years. “We are executing the largest operational, cultural and leadership transformation in our history,” stated its CEO and president, Stéphane de La Faverie.

He himself defined in an interview with Bloomberg final month that the corporate was analyzing the marketplace for doable buy alternatives. “We are analyzing the portfolio and we will always be present in conversations about mergers and acquisitions,” stated the chief.

Puig, sensible progress

Puig, for his half, has managed to carve out a distinct segment among the many giant teams within the beauty and private magnificence sector, being an organization with eminently household capital: regardless of being listed, round 95% of its shares are within the arms of the household conglomerate Exea.

The progress of the corporate chaired by Marc Puig has been exponential within the final 5 years. Within 5 years, its gross sales have doubled, additionally because of intense acquisition exercise. In that interval it has purchased corporations such because the German dermoaesthetics agency Dr. Barbara Sturm; the Swedish firm Byredo, in an operation that reached 1,000 million euros; and earlier than that he did the identical with Charlotte Tilbury, a British firm for which he additionally paid near 900 million. As revealed within the IPO prospectus revealed two years in the past, Puig has invested 2.5 billion in acquisitions since 2011. Of that quantity, 840.2 million have been disbursed in 2022 alone.

The transaction revealed at the moment coincides with latest adjustments on the firm’s management. Last week, Puig introduced the appointment of José Manuel Albesa as CEO, separating this place from that of president. Until then, each positions have been held by Marc Puig, who’s now govt president of the group.

The perfumery and wonder agency additionally appointed Miquel Àngel Serra as monetary director, changing Joan Albiol, who will keep the features of non-member secretary of the board of administrators.