Geiger Set to Privatize L’Occitane International SA in a $7 Billion Deal
Reinold Geiger, the billionaire owner of L’Occitane International SA, is reportedly on the edge of making an offer to privatize the renowned skincare company. The deal, estimated to be around $7 billion, inclusive of debts, would see Geiger acquiring the remaining shares he doesn’t already own at a per-share price ranging from HK$33 to HK$34.
Financing and Offer Details
Financing for the buyout is anticipated to come from Blackstone Inc.’s planned opportunities fund and Goldman Sachs Group Inc.’s asset management arm. The offer could present an enterprise value of approximately €6.5 billion ($7 billion) upon L’Occitane, sources revealed. Blackstone and Goldman Sachs Asset Management may jointly provide roughly €1.6 billion in funding for the acquisition.
Geiger’s Vision and Company History
Geiger, who currently controls over 70 per cent of L’Occitane through a vehicle under his authority, appears firm to take the company private after its 14-year tenure on the Hong Kong stock exchange. Founded in 1976 by Olivier Baussan in Provence, France, L’Occitane initially crafted essential oils from local flora, gradually expanding its offerings. Geiger’s involvement dates back to 1994 when he became a minority stakeholder, later assuming a more hands-on role due to the company’s underperformance.
Challenges and Global Expansion
Despite initial setbacks, Geiger’s vision propelled L’Occitane into a global player, with operations spanning 90 countries. However, the company faces challenges in key markets like China, where intense competition from global and domestic brands poses hurdles to growth.
Current Status and Future Prospects
Trading of L’Occitane shares in Hong Kong was halted on April 9, awaiting an announcement linked to takeover regulations. While discussions are ongoing, no final decisions have been reached, and details such as pricing and timing remain subject to change. L’Occitane, Blackstone, and Goldman Sachs declined to comment on the matter.
Investment Firms Involved
Blackstone’s planned opportunities fund, known for its nimble investments in unconventional markets, boasts a diverse portfolio and manages assets worth approximately $35 billion. Similarly, Goldman Sachs Asset Management, one of the key players in global finance, provides investment solutions across various sectors.
