Blackstone is considering a bid for Hong Kong-based skincare company L’Occitane International. The private equity firm is conducting preliminary due diligence as it evaluates a potential bid for L’Occitane. Blackstone is considering teaming up with billionaire and L’Occitane chairman Reynold Geiger on the buyout, said the sources, who spoke on condition of anonymity because of the confidentiality of the talks.
L’Occitane shares rose 15% to their highest level since February 2022 in early Hong Kong trading on Tuesday. The company has a market value of about 42.7 billion HKD (5.4 billion USD).
Last year, Geiger considered delisting the company to potentially list its shares in Europe at a higher valuation. He eventually abandoned the idea, causing L’Occitane’s price to plummet.
An investment vehicle controlled by Geiger owns more than 79% of L’Occitane, stock filings show. Intentions are at an early stage and there is no certainty that they will lead to an offer. L’Occitane may also attract interest from other suitors.
A representative for Blackstone declined to comment. A spokesperson for L’Occitane did not immediately respond to a request for comment.
The Luxembourg-headquartered company listed its shares in Hong Kong in 2010. The share price peaked in 2022, nearly doubling its IPO price, but has been on a downward slide since then. L’Occitane’s enterprise value was about 10 times earnings before interest, taxes, depreciation and amortization at Monday’s market close, while rivals traded at more than 13 times.
