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.
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