L'OCCITANE (00973) announced that on March 28, 2024, the company...
Zhitong Financial App News, L'OCCITANE (00973) announced that on March 28, 2024, the company entered into a sale agreement. The company will sell and transfer target rights (all of the company's direct and indirect interests in Grown Alchemist) to the buyer, the company will no longer hold any interests in the target company 14 Groupe S.A. and Grown Alchemist, and the target company and Grown Alchemist will no longer be a subsidiary of the Group, and the consolidation will be terminated from the Group Invoicing.
The company acquired the target company because it believed that Grown Alchemist could strategically cooperate with the Group and anticipated that the brand could complement the Group's other beauty, skincare and health brands. Since the initial acquisition, the company is adjusting its strategy in view of changes in the global economy and market environment, and the significant growth of its other brands. Therefore, as part of the strategic adjustment, the company believes that the sale will help focus resources and energy on its core brand L'OCCITANE en Provence and accelerate the dynamic growth of other brands, thereby improving the Group's overall financial performance.
Buyers are interested in acquiring Grown Alchemist due to its strong brand image, award-winning and highly effective products, and sustainable and all-natural quality with inherent growth potential. Buyers saw the acquisition of Grown Alchemist as an opportunity for the brand to gain more strategic flexibility and autonomy outside of the listed group. As a private company, Growth Alchemist has a unique investment strategy and an independent management team that can work to achieve the brand's development goals. Growth Alchemist will enjoy greater business flexibility and pursue customized strategies, especially unique partnerships with lifestyle and music brands.