L’Occitane International to Go Private in $1.78B Deal Led by Chairman Reinold Geiger

Hong Kong-listed skincare company L’Occitane International has announced that its chairman and major shareholder Reinold Geiger plans to take the business private, valuing it at a maximum of HK$13.91 billion (US$1.78 billion). The move was first reported by Reuters in early April when sources claimed that Geiger was engaged in advanced talks with investors and lenders regarding the deal, which could be financed by U.S. private equity giant Blackstone’s debt financing efforts. As part of the plan, L’Occitane Groupe (the investment holding company owned by Austrian billionaire Reinold Geiger) will pay HK$34 for each share not already held in its bid to acquire the remaining shares that it does not currently own – a premium of 30.8% on the stock’s last close price of HK$26 on February 5th, which was before trading was halted on April 9th. At March-end, L’Occitane Groupe held an ownership stake in the company amounting to 72.39%. JPMorgan Chase will provide financial advisory services for L’Occitane Groupe throughout this transaction. The announcement comes shortly after Geiger called off a buyout attempt that he had attempted just months prior. Shares of L’Occitane International are set to resume trading tomorrow (Tuesday).