L’Occitane buys skincare brand Elemis for $900m

L’Occitane International has purchased UK-based beauty and skincare firm Elemis for $900m.

Established in 1990, Elemis offers beauty products that are produced using natural ingredients. The company markets its products directly to consumers online, as well as wholesale to a number of distribution channels such as QVC and spas.

L’Occitane noted that the acquisition of Elemis complements its strategy to build a leading portfolio of premium cosmetics brands.

The deal will also support L’Occitane’s omnichannel distribution and product categories, particularly in skincare. Elemis will use the L’Occitane’s geographical presence to expand into new markets.

Once the acquisition is complete, Elemis will be led by the existing management team, headed by co-founder and CEO Sean Harrington, co-founder and president Noella Gabriel, and co-founder and chief marketing officer Oriele Frank.

L’Occitane chairman and CEO Reinold Geiger said: “This is L’Occitane’s largest acquisition since listing and a major step forward in building a group of premium beauty brands.

“Elemis presents a truly unique opportunity that fits us perfectly in terms of brand ethos, product quality, management capability, as well as growth and profitability trajectory.

“Elemis has enormous growth potential in untouched markets and channels, particularly in the Asia Pacific where we have a strong presence. We are confident Elemis will be immediately accretive to the group’s results, in line with our aim to deliver sustainable value to our shareholders.”

L’Occitane will fund the transaction using cash and bank loans.

Expected to be complete in Q1 2019, Elemis will become a wholly-owned subsidiary of L’Occitane International.