Spanish group Puig negotiates purchase of stake in Gera, say sources

SAO PAULO-the Spanish company Puig perfumes and fashion is in talks to buy a minority stake in the Group brazilian manufacturer and retailer Granado, cosmetic products, stated four sources with knowledge of the matter.
The Puig, which is based in Barcelona and is parent company of brands Carolina Herrera and Jean Paul Gaultier, can pay about 1 billion reais for a stake of up to 30% in Gera, said the first two sources.
The former Executive of Citigroup''s Investment Bank, Christopher Freeman, who bought the Granado family founder in 1994, want a partner to help the company based in Rio de Janeiro on an international expansion that began three years ago with the opening of a small shop in Paris, said a third source told Reuters.
Both parties are working to announce a deal in the next few days, said the sources. Freeman started the search for a junior partner at the beginning of the year, according to the sources.
Representatives of Granado not commented on the matter. It has not been possible to contact representatives of Puig during non-business hours.
The Grenade, which had revenues of 380,000,000 dollars last year, has achieved average growth of 20% over the last decade, according to the third source. The company hired the investment banks of Itaú Unibanco and BTG Pactual to assist it in the transaction, said the sources. The banks commented on the subject.
The Granado has 47 stores in Brazil, a distribution network and a factory. The most recognized products of Granado include SOAP Phebo, purchased by Freeman in 2004.
For his part, Puig had net profit of EUR 126,000,000 under recipe of 1.645 billion euros last year. The company expects annual sales to reach 2 billion euros by the end of next year.
The Brazil is the third largest market for cosmetics in the world. An agreement between Puig and Granado would occur after the French Coty announced the purchase of beauty products division of brazilian Hypermarcas by 3.8 billion reais in November last year.