L’Occitane Acquires Natural Skincare Brand For $900 Million
The demand for organic skin products is growing, and the French cosmetics giant has taken notice, opting to make a business acquisition into the market segment with one of the largest investments, perhaps the largest acquisition, for the company to date.
L’Occitane International S.A. reported that it managed to get a definitive deal for the acquisition of one of the UK’s biggest luxury skincare and organic skin products companies, Elemis, for a value of $900 million, paid fully in cash. The latter was being sold the private equity firm, L. Catterton’s subsidiary, Steiner Leisure Limited. The transaction was finalized within the first quarter of 2019.
The largest independent British skincare brand, specializing in organic skin products, Elemis was co-founded by Noella Gabriel, Oriele Frank and Sean C. Harrington, with the last one acting as CEO since the company’s founding. The British cosmetics brand has a strong customer base among Millennials and Gen Z customers. The product enjoys worldwide distribution, being available at more than 1,600 salons, spas, stores, as well as e-retailers across the world, on top of being sold on QVC.
L’Occitane CEO Reinold Geiger issued a statement on the acquisition, saying that they happily welcome Elemis in its entirety; brand, business, and people alike, to the L’Occitane’s family, and notes that it’s a major stepping stone for the French company in their goal of creating a portfolio of premium beauty brands that’ll lead the industry, at large. He says that, with its award-winning products, broad appeal, effective consumer-focused strategies, and strong R&D activity, Elemis is in a good spot right now for continued expansion, and L’Occitane has always looked to the British company as a good example of how to operate a major business.
Geiger finished it up by saying that they have admired Elemis for their commitment to and specialization in organic materials as well as scientific innovation, and that they’re also looking forward to bring their expertise and resources in the industry in order to expand the British brand’s reach across the world.
Currently, L’Occitane has at least 3,000 retail outlets, with more than 1,500 of them being owned stores, and has market presence and operations in 90 countries across the world.