The Spanish group announced that it is acquiring the 50% stake held by Esteve in ISDIN, a dermatological care and sun protection brand founded more than 50 years ago by the two companies. Puig is thus acquiring the remaining shares needed to gain full control of the brand and is strengthening a business segment that still accounts for a minority of its sales.
The Madrid-listed Puig Group announced on September 14 an agreement to acquire Corporación Químico-Farmacéutica Esteve’s (CQFE) 50% stake in ISDIN. Upon completion of the transaction, expected in the first quarter of 2027 subject to approval by competition authorities, it will own the entire company. The purchase price totals 1.2 billion euros: 900 million will be paid in cash upon completion, followed by 300 million, interest-free, in the first quarter of 2029.
The two Catalan families joined forces fifty years ago to create the ISDIN brand. Puig contributed its experience in beauty, while Esteve brought its pharmaceutical expertise. This alliance gave rise to a line of products specializing in skincare and sun protection. Puig is thus taking control of a business it has known since its inception. For CQFE, the sale will allow the company to focus on its pharmaceutical and industrial heritage, according to Albert Esteve, chairman of its board of directors.
Skincare, Puig’s Still Minor Third Business Segment
In the first half of 2026, Puig generated €2.35 billion in sales, up 4.4% on a like-for-like basis. Skincare accounted for only €279 million, or 12% of the total. The group thus gains an opportunity to expand this business segment, which is based on research and relationships with healthcare professionals. This third pillar also includes the Uriage, Apivita, and Dr. Barbara Sturm brands. The strategic aim of the acquisition is therefore to accelerate growth in this segment for the group, which currently (first half of 2026) generates 73% of its sales through the Fragrances and Fashion division, with revenue of 1.716 billion euros. As for makeup, driven in particular by Charlotte Tilbury, the division generated €359 million in revenue, representing 15% of Puig’s sales. It grew by 5.8% on a reported basis and by 9.1% on a like-for-like basis compared to the first half of 2025.
A Deal Financed with Cash and Debt
The announcement takes on particular significance following the failure, this past spring, of merger talks with Estée Lauder. Disagreement over valuation had put an end to plans for a combined entity with annual revenue of some 17.5 billion euros. Puig is therefore pursuing its growth through the consolidation of its brands, rather than by embarking on a merger of a completely different scale. “Expanding our presence in dermocosmetics is a strategic priority,” says José Manuel Albesa, the group’s CEO since March 2026.
Puig will finance the acquisition using its own resources and debt. It expects that, following the transaction, its net debt-to-adjusted EBITDA ratio will remain below two. Until the deal closes, ISDIN will retain its current governance structure. For investors, the challenge will be to assess the impact of this takeover on the growth of the skincare segment and on the group’s profitability.
Key Points:
Puig is buying Esteve’s 50% stake in ISDIN for €1.2 billion.
Skincare accounted for 12% of Puig’s sales in the first half of 2026.
The deal is expected to close in early 2027, subject to competition approval.
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