Swirling press reports say the Spanish beauty and fashion giant is in advanced talks with the company for a minority stake. Puig could pay about 1 billion reals, or $306.8 million at current exchange, for a share worth up to 30 percent of Granado, according to Reuters. The wire service said Granado is seeking a partner to pursue its international expansion.
A Puig spokeswoman could not be reached for comment.
Granado, created in Rio de Janeiro in 1870, is the oldest pharmacy brand in Brazil. Its founder, José Antonio Coxito Granado, was a Portuguese immigrant who quickly became the official pharmacist of the country’s Emperor Dom Pedro II. The company is now owned by Christopher Freeman.
Granado’s brand, with colorful packaging, runs the gamut from body care to face, hair and nail care to home fragrance. The label has already made some forays abroad. Its products are currently sold in its own Left Bank Paris boutique and the city’s Le Bon Marché department store, for instance. In France, Granado’s products range in price from 4 euros to 77 euros, or $4.40 to $85.10.
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Granado generated sales of 380 million reals, or $102.7 million at average exchange, last year, and it has registered compound annual average growth of 20 percent during the past decade, according to Reuters.
For its part, family-owned Puig has been expanding its niche beauty category. In early 2015, it acquired Penhaligon’s and L’Artisan Parfumeur.Puig’s portfolio is a combination of owned brands, such as Carolina Herrera and Nina Ricci, and licensed fragrance labels like Prada, Valentino and Comme des Garçons. On Jan. 1 it fully integrated the Jean Paul Gaultier fragrance license after having majority owned the brand’s fashion label since 2011.
Net profits at Puig in 2015 declined 28 percent to 126 million euros, or $139.8 million, on sales of 1.65 billion euros, or $1.83 billion, which were up 9 percent.
The company has the objective of reaching a revenue target in 2017 of 2 billion euros, or $2.21 billion at current exchange.