L’Occitane May Soon Take Its Beauty Business Private — Retail Bum

Beauty brand L’Occitane may soon be going private.

Billionaire chairman Reinold Geiger, who owns a more than 70% controlling stake in the company, is said to be exploring various financing options to buy out the minority shareholders in the company.

That said, there is no guarantee that Geiger might proceed with the transaction.

The news comes at a time when the company’s business is continuing to struggle, with shares down 20% in just the past 12 months, leaving the company with a market cap of $4 billion. Just over the past five years, an average of $1.7 million in L’Occitane stock has reportedly changed hands daily.

The French brand was founded in 1976 by Olivier Baussan. Twenty years later, it was acquired by Geiger, who helped expand its presence to 90 countries across six continents.

In recent years, however, the company’s business has struggled. In the aftermath of Covid-19, the company’s U.S. division was forced to shutter its physical stores and file for bankruptcy in January 2021.

Some of the brands in L’Occitane’s portfolio today include L’Occitane en Provence, Melvita organic beauty products, the Elemis line of collagen creams, Korean skincare brand Erborian, and the Grown Alchemist anti-aging serums, according to Bloomberg.

L’Occitane representatives did not respond to any requests for comment.

Photo credit: L’Occitane

Originally published at https://retailbum.com on July 27, 2023.