L’Occitane buys majority stake in Korean skin care brand Erborian

France-based natural beauty care products manufacturer L’Occitane has acquired majority stake in the Korean premium skin care brand Erborian, which marks the company’s first acquisition of a brand after its listing in Hong Kong.

L`Occitane Group entered into an agreement with Symbiose Cosmetics France and its wholly owned subsidiary, Symbiose Cosmetics Korea, and acquired 50.14% in Erborian.

The firm is also mulling increasing its stake to 63%, while the remaining 37% stake will be owned by Symbiose founders Katalin Berenyi and Hojung Lee.

According to L’Occitane, the new acquisition will provide it with the leeway to expand current network channels and diversify product categories for the Erborian brand and to globalise the Erborian business in partnership with its founders, who will be leading the expansion.

Symbiose founders Berenyi and Lee jointly told gcimagazine that the new partnership and journey with L’Occitane will enable a nice fit between the two groups in terms of brand identity and business philosophy.

"We are confident that with L’Occitane’s strong global experience in managing premium brands and access to its global network, the Erborian brand is entering a new and exciting stage of development," said founders.

Founded in 2006, Erborian has established its presence in more than 15 countries, including Japan, the UK, Germany and France, and is sold in major perfumeries and department stores.

The brand’s revenue is anticipated to be about €2.5m for its current financial year ending 31 August 2012.

In addition, L’Occitane is confident that the strategies to be implemented for the Erborian brand will help its future growth globally and will complement its existing business strategy.