Estee Lauder’s chief executive repeated on Tuesday that discussions with Spanish beauty group Puig are still in progress, but he emphasized that the companies have not reached a point for public disclosure of any agreement.
Speaking at the FT Business of Luxury Summit in Apulia, Italy, CEO Stephane de La Faverie said, "We are in discussion ... when we are ready to announce when we’re over, we will keep you posted." His remarks confirm that talks first revealed in March remain active, but that no final outcome has been achieved.
The negotiations, announced earlier this year, contemplate a combination that would place a portfolio of high-end labels under a single corporate umbrella. Brands named in connection with the discussions include Tom Ford, Carolina Herrera, Rabanne, Jean Paul Gaultier and Clinique. If completed as described in earlier disclosures, the deal would result in what has been characterized as the world’s largest premium beauty player.
De La Faverie reiterated that acquisitions are a long-standing element of Estee Lauder’s approach to growth. He made a point of separating the company’s core emphasis on building its business organically from the selective use of inorganic options.
He said, "Organic (growth) remains the most important one. It shows the desirability, the continuity or the power of the brands that we have in our portfolio. But sometimes you need inorganic (growth) for new geographies, for diversification, new categories."
Those comments underline Estee Lauder’s stated strategy of prioritizing internal brand development and market-facing investment while retaining the flexibility to pursue acquisitions where they can extend reach or add new capabilities. The company’s remarks do not provide a timetable for the ongoing discussions or indicate next steps beyond the pledge to inform the market when an announcement is appropriate.
Context note: The companies publicly disclosed that talks were under way in March. Beyond confirming that conversations continue, Estee Lauder has not provided additional details or a timeline for any potential transaction.