Two cult beauty brands have entered one of the first acquisition agreements of 2019—L’Occitane is set to acquire Elemis for $900 million cash. The transaction, where L’Occitane International SA will acquire Elemis from Steiner Leisure Limited (a portfolio company of L Catteron, the largest and most global consumer-focused private equity firm), is set to close in the first quarter of 2019.
“We are pleased to welcome the Elemis business, brand, and people to the L’Occitane family,” says Reinold Geiger, chairman and CEO of L’Occitane. “It is a major step forward for L’Occitane in building a leading portfolio of premium brands. Elemis is well positioned for continued global growth due to the brand’s broad appeal, award-winning product portfolio, robust new product development pipeline, and effective consumer-focused digital and brick-and-mortar strategy.”
Founder-led since 1990, Elemis has grown as a world leader in luxury skincare and is currently the number one independent British skincare brand. Its products are known for their strong cross-generational consumer appeal, attracting millennials while maintaining loyal Gen X and Baby Boomer consumers thanks to products utilizing natural ingredients and scientific innovation. Elemis relies on five distribution channels, including digital, retail distribution, QVC, professional spas, and maritime spa and retail, to drive awareness, conversion, and retention.
“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," said Sean Harrington, cofounder and CEO of Elemis. “With [Geiger’s] inspiring and entrepreneurial leadership, I am confident that through this transaction we can continue to realize our mission of delivering extraordinary products and experiences and grow Elemis into one of the leading skincare brands in the world.”
The deal is L’Occitane’s largest acquisition and will likely help the brand reach its $1.95 billion sales target within two years, according to a Bloomberg Intelligence note. L’Occitane comprises five brands—L’Occitane en Provence, Melvita, Erborian, L’Occitane au Brésil, and LimeLife by Alcone. The company has more than 3,000 retail outlets, including over 1,500 owned stores, and is present in 90 countries.