Estée Lauder Buying Puig Doesn't Pass the Smell Test
Buying Puig would expand Estée Lauder’s range of fragrances, shifting away from cosmetics. But it would come with risks.
Photographer: Qilai Shen/BloombergWhen Estée Lauder Cos. acquired the Tom Ford luxury and beauty house three years ago, it bought a business model similar to its latest acquisition target, Spain’s Puig Brands SA. But a purchase of Puig, which has a market value of about €10 billion ($11.6 billion), doesn’t pass the smell test for the US firm’s shareholders.
While a deal would add fragrances including Carolina Herrera and Rabanne to Estée Lauder’s portfolio, which is skewed to cosmetics and skincare, Chief Executive Officer Stephane de la Faverie is still relatively early in his turnaround plan. He still has lots to do simply fixing the business he inherited at the start of 2025. Integrating Puig, which hasn’t lived up to its potential since its Madrid listing two years ago, would add to his already considerable task list.