Estee Lauder Calls Off Merger With Spanish Beauty Group Puig
Estée Lauder has decided to terminate a potential merger with Spanish beauty group Puig, reports CNBC. The American beauty giant, which owns the Clinique and Tom Ford Beauty brands, said in March that it was in discussions with Puig, the owner of Charlotte Tilbury and Jean Paul Gaultier, to combine the companies.
However, Estée Lauder announced last week that both parties had terminated discussions and that it remained focused on its “Beauty Reimagined” turnaround strategy, which involves focusing on premium launches and streamlining the company’s supply chain. Its stock soared on Friday, while Puig’s tumbled.
Total Retail's Take: The end of merger negotiations ends months of speculation that Estee Lauder and Puig would create one of the world’s largest beauty companies. The potential merger was under scrutiny by analysts and investors who weren't sold on the match. As Estee Lauder pursues its turnaround, it has decided to go it alone and not add Puig into the mix.
“We are grateful for the conversations we have had with Puig,” Estée’s President and CEO Stéphane de La Faverie, said in a statement. “We are reiterating our confidence in the power of our incredible brands, our talented teams, and our strength as a standalone company. We are more optimistic than ever about our ability to unlock significant long-term value through Beauty Reimagined, and we remain focused on accelerating that progress.”
Estee Lauder did say in the statement that it will continue to evaluate and evolve its portfolio to drive sustainable growth going forward. So while Puig may be out of the picture, don't be surprised to see Estee Lauder active in the M&A market in the future.
- Categories:
- Mergers & Acquisitions
- People:
- Stéphane de La Faverie
Kristina Stidham is the digital content director at Total Retail and sister brands Women in Retail Leadership Circle and Women Leading Travel & Hospitality at NAPCO Media. She is passionate about digital media and handles video, podcast and virtual event production for all brands. You can often find her at WIRLC, TR, WLT&H or industry events with her camera and podcasting equipment—or at home on Zoom—recording interviews with thought leaders and business executives.
Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia. Go Owls! When she's not in the office, she loves to go on long walks, sing around the house, hangout with her family and two pet guinea pigs, and travel to new places.
