The news confirms a report published Wednesday by WWD.
The Spanish fragrance and fashion house said in a statement that it will acquire a majority stake in Charlotte Tilbury alongside its founders, “who will rollover a significant minority stake.”
BDT Capital Partners is investing alongside Puig and hold a minority stake. The merchant bank also acted as a financial advisor to Puig.
Financial terms of the deal were not disclosed, but a source pegged the brand’s purchase price at around 1.2 billion pounds, making the acquisition about five-times revenues. The company’s earnings before interest, taxes, depreciation and amortization are said to be in the high $20 million range.
Tilbury is to remain as chairman, president and chief creative officer of the brand, while Demtra Pinsent will maintain her chief executive officer role.
Pinsent launched the company with Tilbury and served as ceo from day one. Before joining what was then a start-up, Pinsent was a partner at McKinsey & Company, heading up its luxury goods division in London. WWD first reported that Tilbury was looking into a deal in 2019, and added investment bank Jefferies to work with Goldman Sachs early this year.
Also on Thursday, Puig released its financial results for 2019. The company, with a stable including a mix of owned and licensed labels such as Carolina Herrera, Nina Ricci, Paco Rabanne and Come des Garçons, said its net income reached 226 million euros, which represents a 6.6 percent decline versus 2018.
Puig’s net income was 11 percent of its net revenues, which came in at 2.03 billion euros. On a reported basis, net revenues gained 5.1 percent, while in like-for-like and constant-currency terms, net revenues advanced 6 percent.
By geographies, 86 percent of Puig’s sales were rung up outside its domestic market Spain. Of the group’s business abroad, 41 percent came from emerging markets, or those situated outside of North America and the European Union.
Last year, Puig’s products were sold in more than 150 countries, and the company has 26 affiliates.
The Charlotte Tilbury acquisition allows Puig to push further into the color-cosmetics category, which the family-owned company first dipped into, with great success, after acquiring the Christian Louboutin beauty license in March 2019.
Puig, which mostly trades in the fragrance space, also welcomes a brand that has a swiftly growing skin-care business.
The Tilbury web site is said to have performed very well. Further, it’s believed Puig sees Tilbury as someone who can develop other lines, potentially a lifestyle concept.
Charlotte Tilbury Beauty, a rapidly growing hybrid skin-care, makeup and scent brand, was launched in the U.K. in late 2013.
Celebrity makeup artist Tilbury has herself personified a new generation of beauty entrepreneurs who are rewriting the rules of marketing and are as adept at building online communities as making in-store appearances, as comfortable spearheading next-generation product development as reading a P&L.
Her brand — best known for Magic Cream, priced at $100, and Pillow Talk Matte Revolution Lipstick, at $34 — successfully represents the convergence of all of Tilbury’s
worlds, creating “looks” (and attendant products), based on her work.
Tilbury’s products are frequently merchandised with “look” suggestions that guide buyers to which products they can use to create various beauty moments.
In 2017, Charlotte Tilbury Beauty took on a new minority investor, Silicon Valley-based venture capital firm Sequoia Capital. Welsh-born billionaire Sir Michael Moritz, a partner at Sequoia Capital, joined the board of the beauty brand.
Tilbury’s other minority investors included Venrex Investment Management, run by Mark Esiri.
In fiscal 2018, Charlotte Tilbury’s sales rose 34 percent to 100.9 million pounds, while EBITDA was 3.8 million pounds, up from 2.8 million pounds in the previous year. Net profit after tax was 3.5 million pounds, according to Companies House, the official register of U.K. businesses.
Speculation about a pending deal had emerged months ago, with Unilever, The Estée Lauder Cos. Inc., L’Oréal and Shiseido cited as front-runners.
According to a source, Charlotte Tilbury went into the sale process looking for a valuation of up to 3 billion pounds.
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