PARIS — Puig has taken a minority stake in Granado, the Brazilian high-end beauty maker and retailer, to help bolster the brand’s growth at home and abroad.
Financial terms of the agreement were not disclosed, but earlier reports swirling in the European press had pegged a possible deal at about 1 billion reals, or $309.3 million at current exchange, for a share worth up to 30 percent of Granado.
The brand last year reportedly made sales of 380 million reals, or $102.7 million at average exchange, and it registered compounded annual average growth of 20 percent over the past decade.
“Puig will help us to continue with the expansion of the concept stores in Brazil and abroad, which started in 2013 in the French market, with a corner in the luxury department store Le Bon Marché,” said Sissi Freeman, Granado’s marketing and sales director, in a statement.
The label also has its own Left Bank boutique, as well, in the French capital.
Granado, created in Rio de Janeiro in 1870, is the oldest pharmacy brand in Brazil. Its founder, José Antônio 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.
The Granado brand, with colorful packaging, runs the gamut from body care to face, bath, hair and nail care, cosmetics and home fragrance. It has more than 900 stockkeeping units with vegetable-based, paraben-free formulas.
In Brazil, the brand has 47 company-owned flagship stores.
Granado also owns Phebo, a Brazilian perfumery and glycerin soap label that Freeman purchased in 2004. He is to remain in charge of Granado and doesn’t foresee any changes to its business model in the next years, according to Puig.
Puig has been expanding its niche beauty category. In early 2015, the Spanish family-owned company 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 Puig fully integrated the Jean Paul Gaultier fragrance license after having majority owned the brand’s fashion label since 2011.
As reported, 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 $2.25 billion at current exchange.
Acquisitions have been rife in the beauty space of late. Just this June, the activity included Unilever snapping up Dollar Shave Club and L’Oréal announcing it would purchase IT Cosmetics and Atelier Cologne.
In June, the French beauty giant also said it had made an offer to buy Société des Thermes de Saint-Gervais-les Bains. That same month, Shiseido Americas Corp. bought the Laura Mercier and ReVive brands, and Revlon inked a deal for Elizabeth Arden.