L'Occitane buys Elemis for $900 Million

Luxury cosmetics firm L’Occitane agreed to buy beauty and skincare brand Elemis for about $900 million, as the maker of organic lotions looks to expand in the U.S. and U.K. with its biggest deal on record.

Hong Kong-listed L’Occitane agreed to buy Elemis from Steiner Leisure Ltd., a portfolio company of private equity firm L Catterton that focuses on consumer investments.

L’Occitane said the acquisition will bolster the group’s growth globally, with plans to bring the Elemis label into new markets. The brand has been popular among millennial and Generation X consumers.

With the Elemis deal, L’Occitane is likely to reach its 1.7 billion-euro ($1.95 billion) sales target in two years. The company could launch exclusive items for China, Hong Kong and the U.S., which are driving revenue growth during a slowdown in Europe, the note said.

“It is a major step forward for L’Occitane in building a leading portfolio of premium beauty brands,” Chief Executive Officer Reinold Geiger said in a statement. “Elemis is well positioned for continued global growth.”

The deal is L’Occitane’s largest acquisition and follows Natura Cosmeticos SA’s purchase of Body Shop from L’Oreal for about 1 billion euros in 2017. Unilever also acquired South Korea’s biggest maker of beauty products, Carver Korea Co., for 2.27 billion euros in 2017.

Source: Bloomberg Businessweek