Reinold Geiger Offers L’Occitane Buyout

Reinold Geiger, the billionaire chairman and director of L’Occitane International SA, has announced his intention to take the skincare company private and delist it from the Hong Kong stock exchange.

According to a statement, Geiger has offered HK$34.00 per share to acquire all remaining shares of L’Occitane, an offer 61% higher than the average price of the company’s shares over the last 60 days, and one that would place L’Occitane’s valuation at approximately €6 billion ($6.4 billion).

Geiger, who already controls over 70% of L’Occitane, believes that privatisation will provide the management team with greater flexibility to invest in long-term sustainable growth initiatives, which is particularly important considering the intensifying competition in the global skincare and cosmetics industry. Operating privately, the company would be able to pursue strategic investments and more efficiently implement strategies, free from the pressures of the capital markets’ expectations, regulatory costs, and disclosure obligations, share price fluctuations, and sensitivity to short-term market and investor sentiment.

Founded in 1976 by Olivier Baussan in the South of France, L’Occitane started as a small enterprise distilling essential oils and selling them in local markets. The brand quickly gained popularity for its authentic and natural skincare, fragrances, and body care products. Today, the L’Occitane Group is comprised of eight leading beauty brands, including L’Occitane en Provence, Erborian, Sol de Janeiro, and Elemis, and a global network of more than 3,000 retail outlets in 90 countries.

The acquisition will be supported with financing from Goldman Sachs Group Inc.’s asset management arm and Blackstone Inc.’s tactical opportunities fund. As part of the financing structure, external debt will also be provided by Crédit Agricole Corporate and Investment Bank (CA-CIB).