The owner of L’Occitane to take beauty firm private in $1.8 billion deal

The cosmetics group L’Occitane International, owner of L’Occitane en Provence, Sol de Janeiro, Melvita and more is set to delist from the Hong Stock Exchange, where it has been listed since April 2024. In a press release published on Monday April 29, the cosmetics group states that its majority shareholder, Austrian billionaire Reinold Geiger, has announced his intention to acquire all the shares he does not already own.
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“Our family has always taken a responsible, long-term view when it comes to developing our company. The cosmetics sector is undergoing profound changes, and our company has evolved considerably into a geographically balanced multi-brand group, marked by strategic acquisitions such as Elemis, Sol de Janeiro and, more recently, Dr. Vranjes Firenze. The transaction we are launching today will enable us to focus on rebuilding the foundations for the long-term sustainable growth of our business,” says Reinold Geiger, who owns around 70% of the company.

The offer price, paid in cash, amounts to 34 Hong Kong dollars per share, representing a premium of around 60.83% to the average closing price over the last 60 trading days, according to the announcement. L’Occitane International’s majority shareholder will be assisted in this €1.7 billion ($1.8 billion) operation by the Blackstone and Goldman Sachs funds, in addition to debt provided by Crédit Agricole Corporate and Investment Bank. This delisting operation values the L’Occitane International group at €6 billion. 

On April 9, Reuters reported that Reinold Geiger was in advanced discussions with investors and banks, and that an announcement could be made in the next few days. The news agency explained that American private equity giant Blackstone could finance the deal by issuing debt. L’Occitane, which posted sales of €2.1 billion in its last financial year ending March 31, 2023, had suspended trading in its shares earlier in the day.

“25.79% of minority shareholders holding shares in the offer have already committed to tender their shares and a further 12.17% have committed to recommend the offer or have sent letters of commitment,” the press release said, stressing that the offer is subject to a minimum shareholder acceptance threshold of 90%.