Puig is considering a multibillion-euro initial public offering (IPO) as it weighs up its options for new investment.
The Spanish beauty conglomerate confirmed it is in a "reflection phase" and that an IPO is one of several options under review to bring capital in.
Chair and CEO Marc Puig (pictured) told the Financial Times that a stock listing could impose “market discipline” without relinquishing the founding family’s control.
“One option would be to open up the capital,” the chief executive told the publication.
“And opening the capital could mean a private equity shareholder, it could mean a much longer term shareholder, or it could mean the market.”
He said it could also help avoid common pitfalls that can occur in family-run businesses.
“Difficulties can arise, especially in the transition between generations,” said Puig, the grandson of company founder Antonio Puig.
“The search for leadership, a lack of understanding, a loss of passion.
“Having to be accountable to the market brings a discipline and rigour that ensures those issues do not arise.
“Sometimes family businesses can lose their position in the market.
“They can start to die slowly and nobody inside the company is aware of it.
“If you are accountable [to investors] those things can be noticed.”
The conglomerate has not made a final decision on an IPO yet.
Puig said any company changes would be implemented “within the next few years” though.
Both big and niche names, including Byredo, Carolina Herrera, Kama Ayurveda and Rabanne, make up Puig’s beauty and fragrance portfolio.
The company has acquired ten brands in the past 12 years, including make-up giant Charlotte Tilbury, but has accumulated some debt in the process.
Puig’s debt at the end of last year was equal to 1.6 times its 2022 earnings before interest, tax, depreciation and amortisation.
Other beauty giants have mulled and moved on IPOs this year.
Oddity, the company behind the Il Makiage and SpoiledChild brands, was recently valued at US$2.3bn in an upsized IPO.
Johnson & Johnson’s Kenvue consumer health business was also priced above the middle of the expected range ahead of trading on the New York Stock Exchange this year.
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