According to a report from Bloomberg News, Blackstone Inc (BX.N) is nearing a deal to acquire L’Occitane International SA, a skincare company listed in Hong Kong, and take it private. The French cosmetics company, valued at $5.55 billion, suspended trading of its Hong Kong shares earlier in the day, indicating an imminent announcement regarding potential takeover details.
Sources familiar with the matter suggest that Blackstone, a U.S. private equity firm, is likely to collaborate with L’Occitane’s billionaire owner, Reinold Geiger. While discussions between Blackstone and L’Occitane have been ongoing, the specific structure of the deal remains unclear, as disclosed by an anonymous insider to Reuters.
Both Blackstone and L’Occitane have refrained from commenting on the matter. This development follows a decision by Austrian billionaire Geiger, who controls L’Occitane, to dismiss a previous offer to privatize the company in September, causing a dip in share prices.
The initial buyout proposal originated from Geiger’s investment holding firm, L’Occitane Groupe SA, during a time when Hong Kong witnessed a surge in buyout activity and Western companies sought to expand their presence in the rapidly growing Chinese market. L’Occitane, which listed in Hong Kong in 2010, was among the earliest Western companies to offer primary shares in the Asian financial center.
Reports surfaced in February suggesting Blackstone’s interest in acquiring L’Occitane, prompting a notable increase in the French company’s stock value to its highest levels in two years.