L’Occitane International S.A. (L’Occitane) has announced its acquisition of Elemis, for a maximum consideration of $900 million.
The acquisition will further strengthen L’Occitane’s omni-channel distribution—Elemis sells directly to consumers through its websites and wholesale to various channels including digital, retail, QVC and professional spa. It will also strengthen the company’s product categories, skin care in particular.
Elemis will leverage L’Occitane’s geographical presence to expand into new markets, led by its management team including co-founder and chief executive officer Sean Harrington, co-founder and president Noella Gabriel, and co-founder and chief marketing officer Oriele Frank.
The acquisition is set to close in the first quarter of 2019; at that point, Elemis will become a wholly-owned subsidiary.
“This is L’Occitane’s largest acquisition since listing and a major step forward in building a group of premium beauty brands,” said Reinold Geiger, chairman and CEO of L’Occitane. “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. 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.”
Added Harrington: “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. 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 realizing our mission to grow Elemis into one of the leading skincare brands in the world.”