Spain's Puig buys Brazil's Granado stake

Spanish fashion and fragrance firm Puig SA agreed on Tuesday to pay around 500 million reais ($155 million) for a minority stake in Grupo Granado SA, a Brazilian manufacturer and retailer of high-end beauty care goods that wants to pursue global expansion, three people with direct knowledge of the deal said.

Under terms of the deal, part of the proceeds will go to the owners of Granado and the rest to the company in the form of a capital increase, said two of the people, who asked not to be identified since the transaction remains private.

Reuters reported on July 14 that Barcelona-based Puig, the owner of the Carolina Herrera and Jean Paul Gaultier brands, was in advanced talks to buy a stake in Granado.

Efforts to reach media and investor relations representatives at Granado outside business hours in Brazil were unsuccessful. Calls made to Puig's headquarters went unanswered.

($1 = 3.2331 Brazilian reais)