L’Occitane International, the cosmetics group behind renowned brands such as L’Occitane en Provence, Sol de Janeiro, and Melvita, is set to undergo a delisting from the Hong Kong Stock Exchange. The company has been listed on the exchange since April 2024. In an official press release issued on Monday, April 29, L’Occitane announced that its majority shareholder, Austrian billionaire Reinold Geiger, intends to acquire all the remaining shares he does not already own.
Geiger, who holds approximately 70% of the company, expressed his family’s commitment to the long-term growth of the company amidst the transformative changes occurring in the cosmetics sector. L’Occitane International has evolved into a geographically diverse multi-brand organization through strategic acquisitions like Elemis, Sol de Janeiro, and Dr. Vranjes Firenze. Geiger believes that the proposed transaction will allow the company to refocus its efforts on establishing a solid foundation for sustainable growth.
The cash offer price for the shares is set at 34 Hong Kong dollars each, reflecting a significant premium of approximately 60.83% over the average closing price during the past 60 trading days. To facilitate this €1.7 billion ($1.8 billion) operation, L’Occitane International’s majority shareholder will be supported by funds from Blackstone and Goldman Sachs, as well as debt provided by Crédit Agricole Corporate and Investment Bank. The delisting process values the entire L’Occitane International group at €6 billion.
Earlier reports from Reuters on April 9 indicated that Reinold Geiger was engaged in advanced discussions with investors and banks, hinting at an imminent announcement. It was further speculated that American private equity giant Blackstone could potentially issue debt to finance the deal. Subsequently, L’Occitane suspended trading in its shares on the same day.
The press release also revealed that 25.79% of minority shareholders who hold shares subject to the offer have already committed to tender them, with an additional 12.17% committed to recommending the offer or having sent letters of commitment. However, the offer is contingent upon a minimum acceptance threshold of 90% from shareholders.
L’Occitane International, which achieved sales of €2.1 billion ($2.25 billion) in its last financial year ending on March 31, 2023, is now poised for a significant transformation as it prepares to go private under the ownership of Reinold Geiger and with the support of notable financial partners.
