PARIS — Pierre Fabre, founder, president and chief executive officer of Pierre Fabre SA, is taking steps to keep the company private.
Fabre plans to transfer — through the holding company Pierre Fabre Participation — 60 percent of his 89 percent stake in the dermo-cosmetics and pharmaceutical firm that generates 1.7 billion euros, or $2.4 billion at current exchange, annually, to the Pierre Fabre Foundation. That entity currently holds a 5 percent stake in Pierre Fabre SA.
If the French government gives the green light to the transaction, the foundation would hold a 65 percent part of Pierre Fabre SA, while Fabre himself would own 29 percent and the company’s personnel would retain 6 percent.
“The aim of this operation is to secure the long-term independence of Pierre Fabre,” the Castres, France-based firm stated.
In the meantime, Fabre intends to put Pierre Fabre SA under a newly created supervisory committee, which he would chair. Fabre has also hired Jean-Pierre Garnier, formerly ceo of GlaxoSmithKline, as head of Pierre Fabre SA’s management board.
“We are fortunate to have a man with so much experience in the global pharmaceutics arena in the person of Jean-Pierre Garnier, who will enable us to successfully sustain the considerable R&D efforts the company has been making over the past few years and amplify its growth,” stated Fabre.
One-quarter of the company’s sales are invested in research and development.