Puig has announced the purchase of 50% of Isdin for 1.2 billion euros, creating uncertainty in the market. Puig's shares fell 2.17% after the announcement, although analysts see growth opportunities.
The Spanish beauty company Puig has decided to acquire the remaining 50% of the laboratory Isdin from the Esteve family for 1.2 billion euros. This operation, which has surprised the market, caused a 2.17% drop in the value of its shares, which closed at 17.11 euros, the lowest level since mid-August, although the annual balance remains positive with a 15% increase.
According to expansion.com, experts believe that this purchase makes strategic sense, as it allows Puig to diversify into the skincare sector, which currently represents 12% of its sales and has high growth potential. Elena Fernández-Trapiella, an analyst at Bankinter, highlights that the operation fits with Puig's strategy to position itself in premium brands.
However, the valuation has raised doubts. The P/E ratio of the operation stands at 42 times, contrasting with Puig's 16 times and 28 times of L'Oreal, according to analysts from Banco Sabadell. Nicolás López, director of Equity Analysis at Singular Bank, warns that the price is high and the initial impact on earnings per share will be limited.
Despite the concerns, the operation could justify its cost due to the growth potential of Isdin, a leading brand in dermatology, especially in photoprotection. Arancha Piñeiro from Banco Sabadell indicates that the operation could revalue Puig and reduce the gap with its competitors.
On October 28, Puig will hold its Investor Day, where the company is expected to provide more details about the synergies and growth strategy that justify the investment made. At the same time, the company's debt is expected to increase to 2.1 times EBITDA due to the need for financing for this payment.
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