May 20, 2024

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Puig remains in the M&A market after investing €2.5 billion since 2011

Puig remains in the M&A market after investing €2.5 billion since 2011

Puig will continue to grow through acquisitions. The Catalan perfume giant, which yesterday submitted its move to the stock market next May 3 at a value of 14,000 million euros, highlighted that it is still interested in acquiring other companies in the sector, as long as they are “strategic” for acquisitions. The group has strengthened its portfolio in recent years with Investing 2.500 million in the market Mergers and acquisitions (Mergers and Acquisitions) since 2011.

“We expect to continue our highly selective and controlled approach to M&A over the medium term We continue to evaluate opportunities to acquire brands that strategically fit within our portfolio“, the company explained yesterday in its IPO brochure.

The announced acquisition strategy for the coming years has already paid off in 2024, as at the beginning of the year the group acquired a majority stake (65%) in the luxury cosmetics company Dr. Barbara Sturm for €291.1 million. next to, Last March, the company allocated up to 596.7 million euros to invest in other companies on a minority basis.

“We seek acquisitions that strengthen our competitive position in our key sectors and geographies or accelerate our ability to grow in emerging product categories, channels and markets,” Puig added. The Catalan group has not invested in acquisitions in 2023Although in the last two years the budget allocated to participation in third-party companies amounted to 840.2 million euros in 2022 and 4.4 million euros in 2021.

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Since 2011, the Catalan group has doubled its size and profits based on purchases, With approximately one acquisition each year in the fashion, fragrance and specialty cosmetics sectors. The first purchases were made out of necessity to secure the perfume business. The company had a licensing agreement with Paco Rabanne since 1968, and it was not until decades later that the entire company was acquired, which was going through a difficult economic time.

Something similar happened years later with Carolina Herrera, whose fragrances he had run since 1988. Faced with a potential change of hands that would have jeopardized the perfumery license, Puig decided to take over the entire company in the 1990s.

In recent years, the group's perfumes and cosmetics group has added niche names such as Penhaligon's, L'Artisan Parfumeur or Byredo (which it recently fully acquired), among many others. The company pulled off a coup amid the pandemic By acquiring Charlotte Tilbury, a company specializing in color cosmetics, for more than 1.5 billion euros.

Thanks to the purchases, the company has been able to double its income and net results in recent years: if a decade ago it had a turnover of 1,499 million euros and a profit of 176 million euros, In 2023, the year ended with a turnover of €4,304 million and net results of €465 million..

As the company announced on April 8, Puig intends to seek admission to trade shares on the Barcelona, ​​Madrid, Bilbao and Valencia stock exchanges.. practical Building a book (The final price of the securities will then be determined) It is scheduled to begin tomorrow and is expected to end on April 30. The company's shares, which will remain majority owned by the Puig family, are scheduled to list on May 3.

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The company will list between 106,530,612 and 118,636,362 shares on the stock market, bringing the offering size to 3,000 million euros..