Spanish family-owned fashion and beauty house Puig today announced it is to proceed with an Initial Public Offering (IPO) of its class B shares.
The company plans to apply for admission of the shares for listing on the Barcelona, Madrid, Bilbao and Valencia stock exchanges.
The IPO will consist of two offerings. The primary offering tranche of newly issued shares by the company is targeting an equity raise of approximately €1,250 million (US$1,157 million). A larger secondary offering will be made by the company’s controlling shareholder, Puig (controlled by Exea, the Puig family’s holding company).
Following the IPO, Puig will retain a majority stake and most of the company’s voting rights.
Puig Chairman & CEO Marc Puig said: “Today’s announcement is a decisive step in Puig’s 110-year history. Thanks to our strategy of building up a portfolio of owned brands, focusing on prestige products and expanding our leadership in niche fragrances, makeup and dermo-cosmetics, Puig has consistently delivered strong profitable growth.
“Our unique and creative DNA has allowed us to attract leading founders and brands, establishing long-term partnerships and helping them grow while preserving their legacy.
“We strongly believe that building premium brands requires long-term thinking and having a family behind a company fosters this long-term approach, because they tend to care in equal measure about the time horizon of the next generation and the next quarter.
“At the same time, it is important for any family business to have the right checks and balances in place, particularly during generational transitions. We believe that the balance of being a family-owned company that is also subject to market accountability will allow us to better compete in the international beauty market during the next phase of the company’s development.
“Additionally, we believe that becoming a publicly listed company will align our corporate structure with those of best-in-class, family-owned companies in the premium beauty sector globally, help us to attract and retain talent, and support the growth strategy of our brands and portfolio.”
Focusing on the premium beauty market
Puig was founded in 1914 and is a leading player in the fragrance and fashion, makeup and skincare segments. Headquartered in Barcelona, it operates across 32 countries with 17 Love Brands, the largest of which in terms of revenue are Rabanne, Charlotte Tilbury and Carolina Herrera.
The company has streamlined and focused the business on the fast-growing and higher-margin premium beauty business, which comprises exclusive products with high price positioning and quality offering.
About 95% of its 2023 revenue came from ‘Love Brands’, which are fully owned or majority-owned by Puig. A selective acquisition strategy has allowed Puig to grow these brands, avoiding license renewal risk and fostering long-term collaboration with the founders.
The company has also built a portfolio of niche fragrances including Penhaligon’s, L’Artisan Parfumeur, Dries Van Noten and more recently Byredo.
Additionally, Puig has diversified into makeup through strategic acquisitions, including the purchase of Charlotte Tilbury, and through launches such as Christian Louboutin Beauté and Rabanne’s makeup line.
In skincare, Puig acquired Dr. Barbara Sturm earlier this year. This reinforces its position in the premium skincare segment with a portfolio that also includes Uriage, Apivita and wellness brands Kama Ayurveda and Loto del Sur, as well as leading Charlotte Tilbury products such as Magic Cream.
The skincare portfolio is complemented by the company’s 50% stake in Isdin, which Puig co-founded in 1975.
The company will use the net proceeds from the equity raise for general corporate purposes such as refinancing the acquisitions of additional ownership interest in Byredo and Charlotte Tilbury and financing any future strategic investments and capital expenditures.
In addition to the proposed Offering – as part of the consideration to be paid by the company for the acquisition of respective additional ownership interests in Byredo and Charlotte Tilbury from some minority shareholders – Puig will issue an amount of class B shares for their subscription by such minority shareholders. ✈
