L’Occitane announces €785 million acquisition of Elemis
Personal care company L’Occitane announced that it has acquired skincare brand Elemis for a maximum consideration of $900 million (€785 million).
According to L’Occitane, the acquisition is part of the group’s strategy in building a portfolio of premium skincare brands, further strengthening its omni-channel distribution and product categories.
Elemis will utilise the group’s geographical presence and expand into new markets, led by its existing management team of co-founders CEO Sean Harrington, president Noella Gabriel and chief marketing officer Oriele Frank.
“This is L’Occitane’s largest acquisition since listing and a major step forward in building a group of premium beauty brands. ELEMIS presents a truly unique opportunity that fits us perfectly in terms of brand ethos, product quality, management capability, as well as growth and profitability trajectory,” said Reinold Geiger, L’Occitane CEO and chairman.
“ELEMIS has enormous growth potential in untouched markets and channels, particularly in Asia Pacific where we have strong presence. We are confident ELEMIS will be immediately accretive to the Group’s results, in line with our aim to deliver sustainable value to our shareholders.”
The acquisition will be funded by the group’s cash on hand and bank borrowings and is expected to close in the first quarter of 2019.
“We are thrilled to announce this agreement with L’Occitane, which will strengthen the continued growth and momentum behind our timeless brand and remarkably transformative products,” said Harrington, Elemis CEO.
“L’Occitane’s philosophy resonates closely with our own, in creating quality products sourced from nature and developed through cutting-edge science and technology. Together with the Group’s entrepreneurial leadership, I am confident about realising our mission to grow ELEMIS into one of the leading skincare brands in the world.”
Upon closing, Elemis will become a wholly-owned subsidiary of the group.