SHECOPIEDME’s Post

Blackstone, already a notable player in the beauty industry with investments in brands like Supergoop! (2021) and Lazeo (2023), is reportedly setting its sights on L’OCCITANE Group. "The U.S. private-equity giant has been conducting preliminary due diligence while it evaluates a potential buyout bid along with considering the possibility of teaming up with L'Occitane's billionaire chairman Reinold Geiger for the takeover." This potential acquisition marks another step in Blackstone's deepening engagement with the high-end beauty market, positioning it alongside private equity giants such as KKR and L Catterton, who have similarly invested in premium wellness and beauty brands. Blackstone's move towards L'Occitane further emphasizes its strategy of investing in markets that combine luxury with one of consumers' top wellness brands, emphasizing the beauty sector's continued appeal to top-tier investment firms. #Blackstone #LOccitane #LuxurySkincare #StrategicInvestments https://lnkd.in/eazgX66Y

"(Bloomberg) -- L’Occitane International SA’s billionaire owner Reinold Geiger is nearing a deal to take the skin-care company private with funding help from Blackstone Inc., people familiar with the matter said, potentially ending its 14-year run on Hong Kong’s stock exchange. L’Occitane is facing an increasingly challenging market in China, where global brands such as L’Oreal SA and Estee Lauder Cos. are rolling out frequent discounts to compete for a larger market share, and where domestic brands are rising on the back of nationalism. While China was the brand’s top market by sales in financial years 2021 and 2022, it was surpassed by the US last year. The group has also seen declining profits in recent years. In the financial year through March 2023, L’Occitane’s profit plunged 51% from a year earlier, while in the six months through September, profit fell 38%." https://lnkd.in/gtUEFFsB

#dailyorbit: Blackstone is on the brink of a significant move in the luxury skincare industry with a potential bid for French retailer L’OCCITANE Group. With preliminary due diligence underway, this acquisition could see Blackstone teaming up with L’Occitane’s billionaire chairman and majority shareholder, Reinold Geiger, according to Bloomberg. However, “deliberations are at an early stage, and there’s no certainty they will lead to a proposal”. Bloomberg also reports that L’Occitane shares rose as much as 15% to the highest level since February 2022, following their report early this week: https://moonfa.re/49dlhgX What could this mean for consumers seeking premium beauty products?  Let us know in the comments. #SkincareInvestment #LuxuryBeauty #MarketInnovation #Collaboration

L'Oréal’s potential AMOUAGE acquisition: A Boon for Global Travel Retail Beauty Sales? L'Oréal's potential acquisition of a minority stake in Amouage, a prestigious Omani fragrance house, sends ripples through the global travel retail beauty industry. This move underscores the growing significance of niche brands and their potential to invigorate duty-free sales. What other niche beauty acquisitions will we be seeing this year? Sixth Continent Fund, with its knowledge in identifying, investing in- and scaling of such brands, is well-positioned to capitalize on this trend. https://lnkd.in/esQcMqjt #travelretail #nichebeauty

L’OCCITANE Group’s billionaire owner, Reinold Geiger, is poised to make an offer to take the skin-care company private, potentially valuing it at around US$7 billion, including debt. Geiger, who already controls over 70% of the company, is considering an offer of HK$33 to HK$34 per share. Blackstone’s tactical opportunities fund and Goldman Sachs’ asset management arm are expected to provide financing for the deal, contributing about €1.6 billion in total. The move follows a suspension of L’Occitane’s trading in Hong Kong, pending a takeover-related announcement. Founded in 1976, L’Occitane has grown globally under Geiger’s leadership. L’Occitane is facing an increasingly challenging market in China, where global brands such as L'Oréal and The Estée Lauder Companies Inc. are rolling out frequent discounts to compete for a larger market share, and where domestic brands are rising in popularity. #Growth #SkinCare #Business #BuyOut #opportunities I Bloomberg News I Manuel Baigorri I Dong Cao

KIKO MILANO MEETS LVMH LVMH-backed private equity fund Moët Hennessy Louis Vuitton has targeted beauty powerhouse Kiko Milano. After months of speculation, L Catterton announced on Friday that it had acquired a majority stake in the company. So the lord wants to get his hands on the world’s beauty. Created in 1997 by entrepreneurs Antonio and Stefano Percassi, Kiko Milano is controlled by Percassi’s Odissea Srl holding company and generated revenue of €798 million in 2023, up 19% year-on-year. previous year and ranking 49th in the annual ranking of the world’s largest beauty companies by sales. The company has more than 1,100 stores worldwide and sells its products in more than 66 markets. The deal aims to further accelerate the brand’s global growth, particularly in the United States. Last year, Kiko’s sales in the Americas increased by 43% compared to 2022, while those in Asia and Europe increased by 21.3% and 18.6%, respectively. There will be no competition for Sephora, that’s life. https://lnkd.in/eGrfPS9U

Embark on a journey through the fragrance industry's terrain, where we decipher the intricate dance between prominent scents and niche fragrances in an era marked by industry mergers and acquisitions. Explore with us as we uncover the forces shaping the scent world's future. Niche brands have developed strong and authentic fragrances that stand apart in the crowd of so many launches. The main conglomerates in the market -LVMH, Puig, Estee Lauder, L’oriel, and Shiseido to name some. Luxury conglomerates find it much easier to buy a niche brand who have explored the market, crafting a unique fragrance as opposed to funding research and creating one themselves. Niche brands struggle hard to develop and more importantly, maintain and sustain a business that offers authenticity in a fragrance that they have crafted. Why do Brands sell out and Why do big brands buy? Niche smaller perfumers over some time unless funded find it hard to keep the brand, and its authenticity afloat. Big brands need to grow and show newer acquisitions, with brands that show the potential to offer unique compositions to the market. Niche brands, though idealized, face relentless challenges in business survival. The lure of growth tempts many, threatening the very authenticity that originally distinguished them, creating a profound existential dilemma and eventually becoming more commercial and mainstream. #fragranceindustry #majorvsniche #consolidation #acquisitions #bcpl

L’Occitane International is set to be taken private by its billionaire owner in a further shuffling of the pack in the luxury goods sector. Shares in the skincare specialist, which is listed in Hong Kong, were suspended last night ahead of what is expected to be a takeover by Reinold Geiger backed by US private equity group Blackstone. Neither company made any comment when questioned by local media. L’Occtitane has a market value of about HK$43.6 billion (US$5.6 billion) with chairman Geiger in control of more than 70% of the company. Founded in 1976 by Olivier Baussan in Provence, Geiger has been instrumental in the growth of the business since becoming a minority shareholder in 1994. L’Occtitane floated in Hong Kong in 2010 and now has eight brands and some 3,000 locations in 90 countries with the Americas now overtaking China its fastest-growing region due to increasing competition from global brands... More at #Proactive #ProactiveInvestors http://ow.ly/znTi105oWSO

KIKO MILANO MEETS LVMH LVMH-backed private equity fund Moët Hennessy Louis Vuitton has targeted beauty powerhouse Kiko Milano. After months of speculation, L Catterton announced on Friday that it had acquired a majority stake in the company. So the lord wants to get his hands on the world’s beauty. Created in 1997 by entrepreneurs Antonio and Stefano Percassi, Kiko Milano is controlled by Percassi’s Odissea Srl holding company and generated revenue of €798 million in 2023, up 19% year-on-year. previous year and ranking 49th in the annual ranking of the world’s largest beauty companies by sales. The company has more than 1,100 stores worldwide and sells its products in more than 66 markets. The deal aims to further accelerate the brand’s global growth, particularly in the United States. Last year, Kiko’s sales in the Americas increased by 43% compared to 2022, while those in Asia and Europe increased by 21.3% and 18.6%, respectively. There will be no competition for Sephora, that’s life. https://lnkd.in/eUNFT3U5

L’OCCITANE Group Deal to possibly close at $7B in take private/LBO w/ Blackstone. By de-listing off the HK stock exchange the Group can get strategic investment for real value creation strategies (ie, breathing room). As PE has a lot of dry powder to deploy (with some estimates ranging north of 1.2 trillion), even with the current geopolitical issues and macro environment, we will likely see more take privates and other M&A deal activity this year in beauty/fashion/wellness and retail. #PE #MnA #beauty #wellness #fashion #valuecreation #LBO