L'Occitane International announces $1.8b privatisation offer

The $1.8b take-private deal sets the company’s equity value at $6b.

L'Occitane International S.A. has announced that it received an acquisition offer from its controlling shareholder, L'Occitane Groupe S.A., with the aim of privatising and delisting the company from the Hong Kong Stock Exchange.

L'Occitane International S.A. announced that its controlling shareholder, L'Occitane Groupe S.A., has proposed a privatization offer aimed at delisting the company from the Hong Kong Stock Exchange.

The $1.8b take-private deal sets L'Occitane International S.A.'s equity value at $6b.

L'Occitane Groupe, ultimately controlled by Chairman and director Reinold Geiger, who also oversees L'Occitane International, along with its associated parties, holds 72.64% of the company's issued and outstanding shares. It has made a final offer of $4.30b (HK$34.00) per share in cash.

“The rationale is to allow the current management team, which would remain in place, to continue operations of the Company's business as it is and invest in long-term sustainable growth initiatives as a privately held company,” the group said in a statement.

To fund the transaction, L'Occitane Groupe plans to utilise a combination of external debt facilities from Crédit Agricole Corporate and Investment Bank, alongside additional financing from funds managed by Blackstone Inc. and Goldman Sachs Asset Management International.

In response, L’Occitane International has formed an Independent Board Committee to evaluate the offer's fairness and reasonability.

“Our family has always taken a responsible, long-term view when it comes to developing our company,” said Geiger. “The cosmetics sector is undergoing profound changes, and our company has significantly transformed into a geographically balanced multi-brand group, marked by strategic acquisitions such as ELEMIS, Sol de Janeiro, and, most recently, Dr. Vranjes Firenze.“

The offer is also contingent upon a minimum 90% acceptance threshold from shareholders other than L'Occitane Groupe or its concert parties. Irrevocable undertakings have also been secured from existing disinterested shareholders representing approximately 25.79% of the offer shares.