Estée Lauder in discussions over possible combination with Puig

Estée Lauder is successful talks astir a imaginable concern operation with Spanish quality radical Puig.

In a statement, the US-based tegument care, constitution and fragrance institution confirmed that it is successful “discussions regarding a imaginable concern operation with Puig, successful which the 2 companies would perchance merge their businesses”.

The radical warned: “No last determination has been made, and nary statement has been reached. Unless and until an statement is signed betwixt the companies, determination tin beryllium nary assurances regarding the woody oregon its terms.”

Financial presumption of the imaginable woody were not disclosed.

The Wall Street Journal reported that Estée Lauder and Puig person discussed a operation structured with a operation of currency and shares.

If the woody goes through, it volition spot a ample postulation of quality and fragrance names successful the aforesaid group, including Tom Ford, Carolina Herrera, Rabanne, and Clinique.

Citing a root acquainted with the matter, Reuters reported that 1 operator of a tie-up would beryllium to make a larger subordinate amended positioned to vie with L’Oréal.

The quality bureau said specified a woody would effect successful a luxury quality radical valued astatine $40bn and fortify the parties’ footprint successful planetary fragrances, a class that is starting to soften aft respective years of beardown post-pandemic momentum.

With a marketplace capitalisation of $31bn, Estée Lauder owns brands that see Bobbi Brown and La Mer, arsenic good arsenic fragrance labels specified arsenic Le Labo, Jo Malone and Kilian Paris.

Puig is down perfume lines associated with Jean Paul Gaultier and Byredo, and owns cosmetics marque Charlotte Tilbury.

The discussions travel arsenic Estée Lauder works connected a turnaround portion contending with weaker user spending successful the US.

Puig, for its part, reported a slowdown successful fragrance maturation past period arsenic income patterns returned person to pre-pandemic levels.

Fragrance is Estée Lauder’s third-largest gross conception and has been expanding successful portion owed to request from Gen Z consumers.

In the company’s latest quarterly update, the fragrance part recorded a 9% summation portion wide nett income roseate 6%.

Estée Lauder has a way grounds of acquisitions, including its $2.8bn acquisition of US manner statement Tom Ford successful 2022, its largest woody to date.

The institution has besides identified fragrance arsenic a cardinal constituent successful its turnaround plan. For Puig, fragrances relationship for much than 70% of revenue.

The radical completed Spain’s biggest IPO successful astir a decennary successful 2024 and reported a 12% summation successful 2025 nett net past month.

"Estée Lauder successful discussions implicit imaginable operation with Puig" was primitively created and published by Retail Insight Network, a GlobalData owned brand.