Puig under pressure in Madrid; brokers reckon the takeover of Isdin is too expensive

(Il Sole 24 Ore Radiocor) - Puig Brands is bringing up the rear amongst the major players on the Madrid Stock Exchange, following the acquisition of full ownership of Isdin for 1.2 billion euros. The shares of the Spanish fashion, perfume and cosmetics group are at the bottom of the Ibex index. On the evening of Monday 14 September 2026, Puig announced that it had reached an agreement with Corporación Químico-Farmacéutica Esteve (CQFE) under which it will acquire CQFE’s 50 per cent stake in Isdin (a company specialising in dermocosmetics), thereby increasing its stake to 100 per cent.

Under the terms of the agreement, Puig will pay €900 million in cash upon completion of the transaction, which is expected to take place in the first quarter of 2027. A fixed, interest-free deferred payment of €300 million will be due in the first quarter of 2029. The transaction will be financed through a combination of equity and debt. Following completion, Puig expects the Net Debt/Adjusted EBITDA ratio to remain below two times, in line with the company’s previously announced guidance.

The deal “marks a new chapter in a partnership that began 50 years ago, when the Esteve and Puig families combined their respective expertise in the fields of science and beauty to create Isdin. Since then, both families have supported the company’s development, transforming it into an international dermatology and skincare enterprise recognised for its scientific approach and commitment to innovation’, a press release emphasises. “Expanding our presence in the dermocosmetics sector is a strategic priority for Puig. Isdin is a unique company, with a strong management team, a clear strategy and a distinctive position in the dermatology and skincare sector. The full acquisition will provide Puig with the best platform to support the next phase of growth , consolidate our presence in the dermocosmetics sector and continue to invest in the science, innovation and brand strength that have made Isdin a successful company. “This is fully in line with our long-term ambition to build a stronger presence in the skincare sector and create value for all our stakeholders,” said Puig’s CEO, José Manuel Albesa.

However, the acquisition has failed to win over the market. According to analysts at AlphaValue, the deal values Isdin at around 2.4 billion euros, equivalent to 3.7 times its 2025 turnover. Experts consider this to be a high valuation and, by way of comparison, cite L’Oréal’s acquisition of Aesop in 2023, valued at around 4.7 times turnover, even though Aesop ‘benefited from greater international recognition, a broader geographical presence and greater global brand awareness’ and note that Isdin is a more specialised dermocosmetics brand, with a presence concentrated mainly in southern Europe. AlphaValue also points out that Puig’s balance sheet is currently sound and that the payment of €900 million upon completion of the transaction would increase the adjusted net debt to EBITDA ratio for 2027 from around 1.16 to nearly 1.97 times. In conclusion, the analysts believe that, given the current economic climate and the high valuation maintained, this transaction entails greater operational and financial risks than it does obvious potential for short-term value creation.

Founded in 1914 by the family of the same name, which still controls the company, the Puig Group recorded net turnover of 5 billion euros last year. Its brand portfolio includes Rabanne, Carolina Herrera, Charlotte Tilbury, Jean Paul Gaultier, Nina Ricci, Dries Van Noten, L’Artisan Parfumeur, Uriage, Apivita, Dr. Barbara Sturm, Kama Ayurveda and Loto del Sur, as well as beauty licences for Christian Louboutin, Banderas and Adolfo Domínguez, amongst others.