Puig takes majority stake in Loto del Sur
Puig has taken a majority stake in Loto del Sur, Colombia’s leading brand of natural cosmetics.
WHO: Loto del Sur, a nature-inspired brand with authentic Latin American cultural roots, was founded in Bogota, Colombia in 1999 by Johana Sanint. The product portfolio currently covers bath and body, skincare, fragrances and home. The brand is made up of a curated selection of locally sourced botanical ingredients that pay homage to the region’s vast biodiversity. The brand is distributed through a growing distribution network, including 21 stores in Colombia.
Founded in Barcelona in 1914, Puig has been run by three generations of family leaders operating in fashion and in three prestigious beauty categories (perfumes, make-up and dermocosmetics). The brand portfolio is structured in three divisions: Beauty and Fashion, with own brands Carolina Herrera, Paco Rabanne, Jean Paul Gaultier, Dries Van Noten, Nina Ricci, Byredo, Penhaligon’s, L’Artisan Parfumeur, Kama Ayurveda and Loto del Sur ; the Christian Louboutin and Comme des Garçons Parfums et Lifestyle perfume licenses, including Antonio Banderas, Adolfo Dominguez and Benetton; the Charlotte Tilbury division, which includes the luxury makeup brand; and the Derma division, with Uriage, Apivita and the Isdin joint venture.
Present in 150 countries, Puig closed 2021 with a 27% increase in turnover compared to 2019, reaching 2.59 billion euros. For the current financial year, the company expects to achieve a turnover of 3 billion euros and an EBITDA of 500 million euros.
WHY: The agreement reinforces Puig’s commitment to building a unique portfolio of brands. The deal will help achieve the Spanish company’s recently announced targets of doubling its 2020 revenue by 2023 and tripling it by 2025.
IN THEIR OWN WORDS: “The company was born with the aim of developing a beauty brand in Latin America that would be able to compete with the large European companies that have always dominated the market,” said Johana Sanint, founder and CEO of family-owned Loto. del Sur.
“Unlike an investment fund, Puig is interested in building a long-term brand. The most valuable thing is knowing that this project will transcend me and that there will be teams to pursue the brand at future”, added Sanint, who for the time plans to remain at the head of the activities of his company.
- Financial terms of the transaction were not disclosed.
- Puig acquired a minority stake in Loto del Sur and Kama Ayurveda, India’s first authentic Ayurvedic brand of beauty and personal care products, in March 2019.
- Founder Johana Sanint will continue to lead the brand and no changes are expected to the company’s business model, based on its own retail network.
- After the acquisition, the brand will enter the Spanish market, opening a store in Madrid and North America with a door in Miami, as well as continuing expansion in Latin America starting with Mexico and Chile.
- In May 2022, Puig acquired a majority stake in Byredo for a rumored billion dollars.
- In September 2021, Puig invested in Chinese fragrance brand Scent Library.
- In June 2020, BDT Capital Partners invested alongside Puig to acquire a majority stake in Charlotte Tilbury.