Spanish conglomerate Puig is reportedly in discussions to acquire British make-up brand Charlotte Tilbury for a staggering $1 billion. This potential deal is attracting attention as it emerges amid the coronavirus pandemic and is expected to be officially announced in the coming days. Puig is rumored to be partnering with investment firm BDT Capital Partners, which is led by Byron Trott, for the purchase. Charlotte Tilbury, the founder of the eponymous brand, is expected to retain a minority stake in the company.
Charlotte Tilbury is known for its dazzling aesthetic and celebrity endorsements, which have drawn interest from various companies, including Unilever, Estée Lauder, and Shiseido. For Puig, this move represents a strategic expansion beyond its focus on fragrances. The company presently develops and distributes fragrance brands such as Agua Brava, L’Artisan Parfumeur, and Eric Buterbaugh Los Angeles, in addition to holding licenses for Christian Louboutin, Comme des Garçons Parfums, Adolfo Domínguez, and Prada Parfums. Other notable brands owned by Puig include Paco Rabanne, Nina Ricci, and Carolina Herrera.
Charlotte Tilbury boasts a global following among young and affluent consumers, thanks to its collaborations with celebrities and partnerships with influencers. The brand currently has over 3.5 million Instagram followers. Puig’s potential acquisition of Charlotte Tilbury follows its recent investments in Colombian company Loto del Sur, Indian firm Kama Ayurveda, and its majority shareholding in fashion brand Dries Van Noten in 2018.
Puig’s strong financial performance is evidenced by its record revenues of €1.93 billion in 2018. Anticipated sales growth for Paco Rabanne and Carolina Herrera is expected to contribute to the company reaching revenues of approximately €3 billion by 2025. If the acquisition of Charlotte Tilbury goes through, it would mark one of the largest deals in the beauty sector since Coty’s purchase of a 51% stake in Kylie Cosmetics for $600 million in 2019.