L’Occitane International, the prominent skincare chain, experienced a significant surge in its share value following the revelation that its billionaire chairman, Reinold Geiger, is contemplating the idea of taking the company private. The firm officially confirmed on Friday that Geiger, who already holds close to 75% of the company’s shares, is exploring the possibility of acquiring the remaining shares.
With over 3,000 outlets spanning 90 countries and a workforce of more than 8,500 employees, L’Occitane International is a global player in the skincare market. The company’s signature L’Occitane en Provence brand, recognized for its yellow branding and opulent creams, soaps, and oils, has experienced substantial growth from its humble beginnings in the markets of Provence, France.
Shares of L’Occitane International rallied more than 8% on Monday, closing at HK$27.75 in Hong Kong in response to the news.
Geiger’s potential bid comes as the company diversifies its product portfolio, now including brands like Elemis collagen products and the Korean skincare line Erborian. The firm reported profits of €239 million (£206 million) in the latest fiscal year, which ended on March 31.
Trading in L’Occitane International’s shares was temporarily halted on the Hong Kong Stock Exchange following a Bloomberg News report detailing Geiger’s advanced discussions regarding the potential privatization move. According to the report, the deal could potentially value the company at approximately $6.5 billion (£5.1 billion), with a potential offer price of up to HK$35 ($4.47; £3.53) per share.
Addressing these reports, L’Occitane International clarified that the claim of a buyout price reaching that level was “false and without basis.” The company indicated that, if the privatization were to proceed, the offer price would not fall below HK$26 per share.
As L’Occitane International’s leadership contemplates the potential shift from a publicly traded entity to a private company under Geiger’s ownership, the market closely watches the developments in this significant juncture for the skincare brand.
