On April 2nd, L’Occitane disclosed its intention to sell all of its shares of Grown Alchemist to the outgoing CEO, André Hoffmann, who has been a long-term investor in the company since 2022. This move will make him the majority shareholder of the brand. The total acquisition cost €28.35 million. L’Occitane initially acquired a 49 percent share in March 2022 for €5 million, subsequently increasing its ownership to a majority stake in May 2023 through an additional investment of €10 million.
L’Occitane stated that the acquisition of Target by the company was driven by its recognition of Grown Alchemist as a potentially valuable addition to its group, envisioning it as a complement to existing brands in beauty, skincare, and wellness. However, considering evolving global economic and market conditions, along with the substantial growth of other brands in its portfolio since the initial acquisition, the company is adjusting its strategy. Consequently, as part of this strategic realignment, the company believes that divesting Grown Alchemist would enable it to focus resources and attention on its core brand, L’OCCITANE en Provence, and accelerate the growth of its other brands, thereby enhancing the overall financial performance of the group.
Since assuming the position of CEO at L’Occitane International in 2021, Hoffmann supervised the acquisitions of both Grown Alchemist and Sol De Janeiro. Under his leadership, Sol De Janeiro has emerged as L’Occitane’s second-largest brand, experiencing triple-digit year-over-year growth.
