L’Occitane to buy skincare brand Elemis
Hong Kong-listed cosmetics retailer L’Occitane International is to buy privately owned beauty and skincare brand Elemis for about US$900 million.
“This is L’Occitane’s largest acquisition since listing and a major step forward in building a group of premium beauty brands,” said CEO Reinold Geiger in a statement.
The move is part of a strategy to boost L’Occitane’s sales in the UK and the US. In a statement, the company said the the deal will allow Elemis to expand into new markets and boost L’Occitane’s business in markets in which it is not so strong as yet.
L’Occitane has agreed to buy the Elemis brand from Steiner Leisure, a portfolio company of L Catterton, the consumer-focused private equity firm.
“For over 25 years, Elemis co-founders Sean Harrington, Noella Gabriel and Oriele Frank have committed their life’s work to building a brand with the power to span across categories, geographies and generations,” said Avik Pramanik, a partner at L Catterton. “We are proud to have been partners with the founders on this remarkable journey over the past three years and we look forward to seeing Elemis continue to flourish with the global support of the L’Occitane Group for years to come,” he said.
The deal, to be funded by cash and bank loans, will be closed in the first quarter of this year.
L’Occitane, which listed in Hong Kong in 2010, currently has 3285 outlets in 90 countries, including 1555 stores it owns and operates directly. Last financial year it achieved a profit of €141 million on sales of €1.3 billion.