Spanish fashion and beauty company Puig has acquired a majority stake in Swedish luxury brand Byredo, although the exact value of the deal has not been disclosed. The purchase comes after rumors of Byredo’s potential sale, with initial speculation pointing towards L’Oréal as a possible buyer. However, Puig emerged as the winner of the bid. Byredo’s founder, Ben Gorham, and London-based Manzanita Capital will remain as minority shareholders, with Gorham continuing to lead the creative side of the business. Puig’s chairman and CEO, Marc Puig, expressed excitement about the acquisition, stating that it aligns with the company’s purpose of empowering self-expression and commitment to environmental, social, and governance (ESG) principles. Industry sources estimate the transaction to be valued at around €1 billion.

Byredo, established in 2006, has experienced steady growth over the last 15 years. Puig’s expertise with founder-led brands in the beauty and fashion industry is expected to assist Byredo in maximizing its potential across various categories. The brand offers a wide range of beauty products and accessories that are sold in 55 different countries. Positioned in the premium segment, Byredo’s perfumes range from €140 to €245, while their makeup palettes are priced at €62. In 2021, Byredo achieved sales of €119 million, which is a significant increase from €62 million in 2019.

This acquisition marks a significant milestone in Puig’s ambition to develop a portfolio of purpose-driven brands. The Spanish company has been actively expanding its portfolio, including the acquisition of Chinese perfume brand Scent Library in September 2021, as well as acquiring minority stakes in Colombian brand Loto del Sur and Indian label Kama Ayurveda. Puig operates within the fashion, fragrance, makeup, and dermo-cosmetics sectors, boasting renowned brands such as Carolina Herrera, Paco Rabanne, Jean Paul Gaultier, and more. In the fiscal year 2021, Puig rebounded after the impact of the pandemic and reported a 27% increase in turnover compared to 2019. The company has set its sights on achieving sales of €3 billion and an EBITDA of €500 million this year, prioritizing digital growth and expansion in the Asian market.

Useful links for further reading:
Puig Official Website
Byredo Official Website