Blackstone Close to Buying L’Occitane Skin Care Co.

Blackstone is on the verge of finalizing a deal to accumulate L’Occitane Worldwide, the worldwide cosmetics and skincare big. The $5.55-billion French firm has halted buying and selling of its shares on the Hong Kong inventory trade, hinting at a possible takeover by Blackstone.

The non-public fairness agency could collaborate with L’Occitane’s billionaire proprietor, Reinold Geiger, for the buyout. An official announcement of the deal is anticipated to be made within the coming days.

Whereas discussions are in superior levels, there’s nonetheless a chance of delays or the deal falling by means of. Blackstone may additionally maintain a minority stake within the buyout of L’Occitane.

Blackstone has avoided commenting on the matter, and L’Occitane is but to answer requests for feedback. The non-public fairness agency had been considering a bid for L’Occitane and had carried out preliminary due diligence earlier this yr.

L’Occitane, based in 1976 by Frenchman Olivier Baussan, gained international recognition for its important oils constituted of vegetation like lavender. Geiger, the corporate’s chairman, turned a minority shareholder in 1994 and later took cost as a result of firm’s underperformance.

Beneath Geiger’s management, L’Occitane expanded globally, with a presence in 90 nations by means of eight manufacturers and three,000 places. Regardless of its widespread attain, the corporate earns a considerable portion of its income from the Americas, its fastest-growing area.

Austrian billionaire Geiger, who owns greater than 70% of L’Occitane, had beforehand declined a deal to take the corporate non-public final yr, inflicting a dip within the firm’s shares.

Blackstone’s curiosity in buying L’Occitane has led to hypothesis in regards to the construction of the deal. Bloomberg had reported in February that Blackstone was contemplating a bid for L’Occitane, inflicting a surge within the French firm’s share costs.

As the sweetness business awaits an official announcement of this potential buyout, business consultants are carefully monitoring the developments to see how this deal may form the way forward for L’Occitane and the broader cosmetics market.