Puig Acquired Majority Stake in Charlotte Tilbury

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Two founders and BDT Capital Partners cut a deal that benefits two beauty brands and luxury beauty around the world.

Privately held Spanish fragrance group Puig acquired a majority stake in Charlotte Tilbury on Thursday, according to Glossy.

BDT Capital Partners, Puig’s financial advisor for the acquisition, also made a minority investment in the brand.

According to the press release announcement, Charlotte Tilbury herself will remain as chairman, president and chief creative officer of the firm with a “significant minority” stake. Demetra Pinsent will remain as CEO.

Puig said that Charlotte Tilbury will “reinforce Puig’s position in the category and make Puig a strong three-axis global competitor in the luxury beauty category.”

“Charlotte Tilbury also will be able to access Puig global footprint and operations to expand its worldwide presence,” according to the press release.

Andrew Charbin, The Sage Group managing director, stated that “it’s a big leap for Puig, but a very strategic move for the company, in terms of diversifying its business model and revenue footprint to mitigate the risk from fragrance.”

Charbin said that being privately held has given Puig more opportunity to pursue a longer-term strategy without the pressure of outside investors.

Puig achieved a $2.2 billion net revenue in 2019, a 5.1% increasing from 2018, according to WWD. It sells in more than 150 countries.

Between 2017 and 2018, Charlotte Tilbury sales rose 34% to $126 million. The brand is reportedly valued at $1.2 billion, almost half of Puig’s overall market cap.

Similar to the Coty Inc. deal with Kylie Cosmetics, acquiring a majority stake instead of the whole business will remain founders’ monetary and personal interests in growing their namesake brands.

Aside from this transaction, Puig’s investment in Loto del Sur, a Colombian premium beauty company, and Kama Ayurveda, an Indian beauty and wellness brand, and its beauty license with Christian Louboutin have revealed the company’s ambitions to become a more competitive player in the beauty market.

Krista Corrigan, Edited retail analyst, pointed out that “above all, it demonstrates confidence in the high potential for the beauty category and an investment in a younger generation of shoppers.”

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