FB News

Puig and Hermes enter into share sale agreement

By Rashmi Kumar

Puig, the family-controlled perfume and cosmetics group, has become the majority shareholder in fashion house Jean Paul Gaultier after it purchased a 45% stake in the company from fellow family-controlled business Hermes.

Puig said in a statement on 4 May that it has bought Hermes’ full 45% stake in Jean Paul Gaultier for €16 million, along with some of the designer’s shares, but added that founder Jean Paul Gaultier – after whom the company is named – will continue to be responsible for its creative activities.

Third-generation chairman and chief executive of Puig, Marc Puig, said in a statement: “Our entrance within the capital structure of this emblematic fashion house reinforces our strategic commitment to strengthening our group’s fashion activity.”

The Spanish company, which owns brands including Carolina Herrera and Nina Ricci, also said that Manuel Puig, vice chairman and brother of Marc, will become the president of Jean Paul Gaultier.

In a separate statement, luxury goods company Hermes said that besides the €16 million for its stake, it will also receive €14 million as repayment of a loan – the deal will generate a total accounting profit of €30 million for the group.

Hermes, which has been a shareholder in Jean Paul Gaultier since 1999, was founded in 1837 by Thierry Hermes. The family members control around 74% of Paris-based Hermes, through a holding company created to avoid a takeover attempt by rival group LVMH (Continue reading here). Hermes had 2010 revenues of €2.4 billion.

Barcelona-based Puig was founded in 1914 by Antonio Puig, and is currently controlled by third-generation family members. The group is much known for its family and business values and was awarded the IMD-Lombard Odier Global Family Business Award in 1998. The group had 2010 revenues of €1.2 billion.