The merger between Estée Lauder and Puig, the owner of Jean Paul Gaultier, fell through due to pricing, Stéphane de La Faverie, President and CEO of the U.S. cosmetics manufacturer, said on Tuesday, while adding that the company remained open to acquisitions if they made financial sense.
Estée Lauder and Puig ended negotiations late last month that would have created a premium beauty giant better positioned to compete with industry leader L'Oréal.
Leaks, disagreements between the powerful families controlling both companies, and demands, including some from makeup mogul Charlotte Tilbury, led to the collapse of the talks, five people with direct knowledge of the deal told Reuters.
Speaking at a Deutsche Bank consumer conference in Paris, De La Faverie said it was a matter of price.
'If we cannot achieve growth and profitability at the right price, then it is not an option. And that is why, obviously, this deal did not go through, because it was not at the right price,' he said, adding that the company will continue to evaluate opportunities.
The owner of Clinique and MAC said in May that it would cut between 9,000 and 10,000 jobs worldwide as it accelerates its 'Beauty Reinvented' strategy, aiming to save up to $1.2 billion in annual costs.
(Reporting by Alessandro Parodi in Gdansk; editing by Dominique Patton; Spanish editing by Benjamín Mejías Valencia)
Puig Brands SA (Puig) specializes in the design, manufacture and marketing of high-end beauty, personal care and perfumery products. Net sales (before intercompany eliminations) break down by family of products as follows:
- perfumery and fashion items (72.3%): perfumes, eau de parfums, eau de Cologne, lotions, soaps, clothing, footwear, fashion accessories, etc. (brands Carolina Herrera, Jean Paul Gaultier, Nina Ricci, Rabanne, Byredo, Christian Louboutin, Comme des Garçons, Dries Van Noten, L'Artisan Parfumeur, Penhaligon's, Adolfo Domínguez, Banderas, etc.);
- make-up products (16.8%): foundations, lipsticks, lip glosses, eyeliners, concealers, mascaras, eyeshadows, etc. (brands Carolina Herrera, Charlotte Tilbury, Rabanne, Byredo, Christian Louboutin and Dries Van Noten);
- skin care products (10.9%): moisturizers, cleansers, serums, toners, exfoliants, face masks, sun creams, etc. (Uriage, Apivita, Kama Ayurveda, Loto del Sur and Charlotte Tilbury brands).
At the end of 2025, the group has 7 production sites in Spain (2), France (3), Greece and India.
Products are sold through more than 330 owned stores, distributors, retail outlets and the Internet.
Net sales are distributed geographically as follows: Europe/Middle East/Africa (54.6%), Americas (34.9%) and Asia/Pacific (10.5%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite) and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be carried out. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of rankings based on the following ratings: Returns (Composite), Profitability (Composite) and Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully read the associated descriptions.
ESG MSCI
ESG MSCI
The MSCI ESG score assesses a company’s environmental, social, and governance practices relative to its industry peers. Companies are rated from CCC (laggard) to AAA (leader). This rating helps investors incorporate sustainability risks and opportunities into their investment decisions.