Puig increases its stake in Colombian brand Loto del Sur
The Spanish Puig group is taking over Loto del Sur, a natural cosmetics brand founded in 1999 by Johana Sanint. This strategic investment expansion follows Puig's acquisition of a minority stake in the Colombian business in 2019. Financial details of the transaction have not been disclosed.
As detailed by the company led by Marc Puig, the goal of the acquisition is to uphold the "commitment to boost the leadership" of the cosmetics company in Latin America, while continuing to grow internationally. Puig is planning to open a first Loto del Sur store in Madrid and to enter the U.S. market with an establishment in Miami. In Latin America, the company has plans to strengthen the premium brand's presence in Mexico and Chile. Loto del Sur currently operates via its own online store and 21 physical boutiques in Colombia.
"Puig is interested in building brands for the long term. The most valuable thing is knowing that the project will transcend me and there will be teams that will continue to run the brand in the future," the company's founder, Sanint, told FashionNetwork.com last May about her alliance with the Barcelona-based fashion, cosmetics and fragrance group. For the time being, the entrepreneur will remain at the helm of the brand as CEO and the Puig group has no plans to "change the company's business model", which is based on direct distribution through its own stores.
At the end of May, the Spanish group also acquired a majority stake in the Swedish luxury cosmetics firm Byredo. Industry sources estimated that the transaction was worth 1 billion euros. This is a considerable figure that Puig would also have disbursed in 2020, when it acquired a majority stake in the British makeup brand Charlotte Tilbury. In September 2021, the Chinese perfume brand Scent Library also became part of the company's brand portfolio.
This commitment to the Bogota-based firm once again underscores Puig's desire to continue to expand its portfolio of brands, especially in the makeup and dermo-cosmetics categories. During the presentation of its annual results, the Spanish company underlined its intentions to continue "the search for opportunities that are in line with the company's strategic objectives".
Founded in Barcelona in 1914, Puig is active in the fashion, fragrance, makeup and dermo-cosmetics sectors with a wide range of brands including Carolina Herrera, Nina Ricci, Paco Rabanne, Jean Paul Gaultier, Dries Van Noten, Penhaligon's and L'Artisan Parfumeur. The company also owns licenses for brands such as Christian Louboutin and Comme des Garçons Parfums, as well as lifestyle fragrances such as Adolfo Dominguez, Antonio Banderas, Shakira and Benetton.
With a presence in 150 countries, Puig closed 2021 with a 27% increase in turnover over 2019 to €2.59 billion. For the current financial year, the company expects to achieve sales of €3 billion and Ebitda of €500 million.
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