L'Occitane Group to acquire ELEMIS for $900 million
L'Occitane International, the leading manufacturer and retailer of natural cosmetics with a portfolio of premium beauty brands, today announced that it has entered into a definitive agreement to acquire ELEMIS, the number one luxury British skincare brand, for $900 million in cash. ELEMIS is being sold by Steiner Leisure, a portfolio company of LCatterton, the largest and most global consumer-focused private equity firm.
Founder-led since 1990, ELEMIS is a world leader in prestige skincare and is the number one independent British skincare brand. ELEMIS' products garner strong cross-generational consumer appeal, with a proven ability to attract Millennials while maintaining loyal Gen X and Baby Boomer consumers. ELEMIS offers four award-winning skincare franchises that mirror the consumer journey and harness the power of the most efficacious natural ingredients and latest in scientific innovation. ELEMIS capitalizes on its five strategic distribution channels – digital, retail distribution1, QVC, professional spa and maritime – to drive awareness, trial, conversion and retention across the omni-channel.
Reinold Geiger, Chairman and Chief Executive Officer of L'OCCITANE said, "We are pleased to welcome the ELEMIS business, brand and people to the L'OCCITANE family. It is a major step forward for L'OCCITANE in building a leading portfolio of premium beauty 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 distribution strategy. We have long admired ELEMIS for their commitment to natural ingredients and scientific innovation, and we look forward to utilizing our expertise in the category to expand the brand's footprint around the world."
"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, Co-Founder and Chief Executive Officer of ELEMIS. "Reinold Geiger has a strong history of developing and supporting brands like ours that are creating products sourced from nature and developed through cutting edge science and technology. With his 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."
Marc Magliacano, Managing Partner of LCatterton's Flagship Buyout Fund, said, "Over decades, ELEMIS has built an enduring and truly unique brand with powerful consumer appeal across generations, a relentless focus on innovation and an unwavering commitment to high quality sourced ingredients. Since partnering with Steiner Leisure in 2015, we have worked alongside ELEMIS' talented management team to invest in its innovation capabilities, expand its product assortment and evolve its go-to-market strategy with the ultimate goal of appealing to a wider consumer audience. This transaction represents a terrific outcome for ELEMIS and L Catterton, and we are confident that ELEMIS will thrive and reach new heights in partnership with L'OCCITANE."
"For over 25 years, ELEMIS co-founders Sean Harrington, Noella Gabriel and Oriele Frank have committed their life's work to building a brand with the power to span across categories, geographies and generations. We at L Catterton are proud to have been partners with the founders on this remarkable journey over the past three years. We look forward to seeing ELEMIS continue to flourish with the global support of the L'OCCITANE Group for years to come," said Avik Pramanik, Partner of L Catterton.
The transaction is expected to close in the first quarter of 2019.