L’Occitane International is set to be taken private by its billionaire owner in a further shuffling of the pack in the luxury goods sector.
Shares in the skincare specialist, which is listed in Hong Kong, were suspended last night ahead of what is expected to be a takeover by Reinold Geiger backed by US private equity group Blackstone.
Neither company made any comment when questioned by local media.
L’Occtitane has a market value of about HK$43.6 billion (US$5.6 billion) with chairman Geiger in control of more than 70% of the company.
Founded in 1976 by Olivier Baussan in Provence, Geiger has been instrumental in the growth of the business since becoming a minority shareholder in 1994.
L’Occtitane floated in Hong Kong in 2010 and now has eight brands and some 3,000 locations in 90 countries with the Americas now overtaking China its fastest-growing region due to increasing competition from global brands in Asia.
Profits fell 51% in the year to March 2023 and were down by a further 38% in the last six months.