L’Occitane Prepares to Go Private

L’Occitane International S.A. has announced significant progress in its journey towards privatisation, with an impressive 91.97% of disinterested shareholders agreeing to tender their shares. This number surpasses the necessary threshold for a squeeze-out, allowing L’Occitane Holding S.A., a wholly-owned subsidiary of the company’s controlling shareholder, Reinold Geiger, to proceed with the compulsory acquisition of the remaining shares, leading to the final steps in the company’s privatisation process.

This news comes after Geiger made an offer of HK$34.00 per share to acquire all remaining shares of L’Occitane, an offer that places L’Occitane’s valuation at approximately €6 billion ($6.4 billion).

“We are delighted with the strong support from our shareholders. This transaction will provide our group with the flexibility to make longer-term business decisions,” Geiger said. “We remain committed to our brand-specific and geography-specific strategies. We firmly believe that this is in the best interests of our employees, business partners and other stakeholders, who will benefit from our accelerated growth and enhanced competitiveness in the global skincare and cosmetics industry.”

The privatisation process will reach its next milestone when the offer formally closes on 6 August 2024. Following this, the company will issue compulsory acquisition notices for the remaining shares. From 7 August 2024, trading of L’Occitane shares will be suspended until the company’s complete delisting from the Hong Kong Stock Exchange.

Founded in 1976 by Olivier Baussan in the South of France, L’Occitane started as a small operation distilling essential oils. It quickly became popular for its authentic skincare and fragrances. Today, the L’Occitane Group includes eight major beauty brands, such as Erborian and Elemis, and operates more than 3,000 retail outlets across 90 countries.

Geiger initially invested in L’Occitane as a minority shareholder in 1994, and by 1996, he had ascended to the role of group chairman after acquiring control of the company. He successfully led L’Occitane to a public listing in 2010, generating over $700 million through the IPO.

Upon completion of the compulsory acquisition, L’Occitane will be delisted, concluding its public trading journey and beginning a new chapter focused on long-term strategic growth.