According to people familiar with the matter, L'Occitane's controlling shareholder Reinold Geiger and Blackstone Group are close to reaching an agreement to privatize the skincare company, which may end L'Occitane's 14-year listing on the Hong Kong Stock Exchange.
According to the above sources, the world's largest alternative asset management company may provide debt financing for this full acquisition deal. Those familiar with the matter, who requested anonymity due to undisclosed circumstances, said that the relevant transaction may be announced as soon as possible within the next few days. L'Occitane suspended trading in Hong Kong on Tuesday pending an announcement relating to the M&A Code.
People familiar with the matter said that although the negotiations have reached the final stage, they may still be delayed or even broken down. A representative from Blackstone declined to comment, and L'Occitane did not immediately respond to requests for comment.
In February, it was reported that Kuroishi was considering the acquisition of L'Occitane and had conducted preliminary due diligence. The company's market capitalization is approximately HK$43.6 billion (US$5.6 billion). According to filing documents, an entity with the ultimate controller being billionaire Geiger holds more than 70% of L'Occitane's shares.
L'Occitane was founded by Frenchman Olivier Baussan in 1976. It initially used plants such as lavender from the Provence countryside to produce essential oils and sell them in the local market. Geiger became a minority shareholder in the company in 1994, but he has said that his poor performance prompted him to work for the company to protect his investments.
He expanded L'Occitane's business globally. The retailer was listed in Hong Kong in 2010 and currently has 8 brands and around 3,000 stores in 90 countries. However, only about one-third of the company's revenue comes from Asia, and America is the region where it is growing the fastest.