Billionaire Moves to Take L’Occitane Private in a $7 Billion Deal

In a bold move that could reshape the luxury skincare landscape, Reinold Geiger, the billionaire owner of L'Occitane International, is reportedly preparing a lucrative offer to privatize the renowned beauty company.

Sources closely linked to the matter indicate that the deal, potentially amounting to a staggering US$7 billion, including debt, may be put on the table as soon as Monday, April 29.

Funding Powerhouses Join the Bid

Reuters noted that this ambitious acquisition is poised to draw upon substantial financial support from notable entities. Blackstone's tactical opportunities fund and Goldman Sachs Group's asset management arm are ready to contribute funding towards realizing the buyout.

According to the same well-placed sources, an anticipated offer ranging from HK$33 to HK$34 per share could propel L'Occitane's enterprise value to an impressive 6.5 billion euros (approximately S$9.5 billion).

A Dominant Stake and Strategic Suspension

Currently, a substantial portion of L'Occitane is under the control of a vehicle ultimately directed by Geiger, who, holding the reins as chairman, claims ownership of over 70% of the company, as revealed in exchange filings.

Notably, the company's trading on the Hong Kong Stock Exchange was suspended earlier in the month, on April 9, in anticipation of news regarding the takeover. Its stock was last valued at HK$29.50, solidifying a market value close to US$5.6 billion.

Given the weight of the backing from financial giants Blackstone and Goldman Sachs Asset Management, this proposed acquisition could signal the end of L'Occitane's 14-year public listing in Hong Kong, as previously reported by Bloomberg News.

According to Business Times, while discussions are reportedly still in progress, with no concrete decisions finalized and factors like the offering price and precise timing remaining variable, the skincare industry may soon witness one of its most significant transformations.

Photo: Globe Newswire