L’Occitane owner nears deal to take company private with Blackstone funding: Bloomberg

The news: L’Occitane International’s billionaire owner Reinold Geiger has almost finalised a deal to take the skin-care company private, according to sources cited by Bloomberg.

The numbers: Geiger owns over 70% of L’Occitane, which has a current market value of around HK$43.6 billion ($8.38 billion). Geiger is considering buying out minority shareholders at a 20% premium to the February 6 share price of HK$26 per share.

The context: Asset manager Blackstone is reportedly providing debt financing for Geiger’s take-private, in a deal that would end L’Occitane’s 14 year listing on Hong Kong’s stock exchange. Trading has been suspended in Hong Kong since Tuesday pending an announcement on the takeover talks.

The deal adds speculation to L’Occitane’s succession plans, after Geiger gave up his role as CEO in 2021 to long-standing business partner Andrew J. Hoffmann. In January this year, Hoffmann was replaced by a former LVMH executive. Geiger’s three sons hold senior management positions in the company, but no-one has yet been tapped as Geiger’s likely successor.