Updated: June 5 2020.
Following months of speculation that CHARLOTTE TILBURY WAS ON THE BRINK OF SELLING HER ICONIC BEAUTY BRAND, it now has now been confirmed that it has been acquired by Spanish fragrance and fashion house, Puig.
According to WWD, Puig, which trades powerhouse brands such as Jean Paul Gaultier, Nina Ricci and Paco Rabanne fragrances, confirmed in a statement that it will acquire a majority stake in Charlotte Tilbury, alongside its founders “who will roll over a significant minority stake.” BDT Capital Partners, which acted as a financial adviser to Puig, is also investing to hold a minority stake.
Tilbury herself will remain as chairman, president and chief creative officer for the brand, with Demetra Pinsent maintaining her CEO role – a position she has held since day one.
Although the financial terms were not disclosed, one source estimated the brand’s purchase price to be approximately £1.2bn, making the sale worth about five-times its revenues. The source revealed the company went into the sale process seeking a valuation of up to £3bn, though this has not officially been confirmed.
For Puig, acquiring Charlotte Tilbury is predicted to be enormously beneficial. For one, it will provide Puig with a further push into colour cosmetics, a product category in which it first dipped into (very successfully) after buying the Christian Louboutin beauty license in March 2018.
The Spanish company, which mostly trades in the fragrance space, will also benefit from owning a brand with a steadily growing skincare business. Sources believe that skincare makes up approximately one-third of Tilbury’s sales, and that share could rise up to 50% by the end of the year – thanks to the successful launch of the Magic Serum Crystal Elixir.
To top it off, several sources have reported that the Tilbury website has performed exceptionally well, which investors find promising, especially as brick-and-mortar retail closed worldwide during COVID-19. The brand’s online sales have also more than doubled since last year, one source reported. Another said that during lockdown, online sales increased 20% week-on-week.
