L’Occitane Acquires Majority Stake in Premium Beauty Brand Sol de Janeiro

Global beauty group L’Occitane International S.A., ranked No. 18 on Happi's 2021 International Top 30 Report, has acquired a majority stake in fast-growing Sol de Janeiro, a US-based premium body care brand that focuses on ingredients sustainably sourced from Brazil.
 
L’Occitane will acquire an indirect equity interest of approximately 83% in Sol de Janeiro, based on a valuation of $450 million, funded by the group’s cash on hand and existing banking facilities. Upon closing, Sol de Janeiro will become a majority-owned subsidiary of the Group. 
 
Founded in the US in 2015, Sol de Janeiro is a fast growing premium skincare brand in North America; it offers body care, fragrance and hair care products and sells both directly to consumers through its website and through various premium retailers across the globe. 
 
The acquisition is in line with the L’Occitane’s strategy of building a leading portfolio of premium beauty brands. 
 
Sol de Janeiro’s digital presence and established body care business in the US is complementary to the L’Occitane’s balanced geographic strategy to build a portfolio of strong brands in all major geographic regions. Meanwhile, Sol de Janeiro is expected to leverage on the group’s international presence to expand into new markets. 
 
“In the past few years, the Group has accelerated its M&A activity with the support of the strong cash generative qualities of our core L’Occitane en Provence brand, and more recently the Elemis brand. We are delighted to be further expanding our brand portfolio and accelerating our transformation into a multi-brand and geographically-balanced group,” said André Hoffmann, vice-chairman and chief executive officer of L’Occitane.  “With a compelling brand story and an experienced and entrepreneurial management team, Sol de Janeiro reflects our values and premium beauty image. It has enormous potential for growth in new and existing markets and channels around the world and will be immediately accretive to the Group’s results, contributing to healthy and profitable growth in the short and medium term.” 
 
“I have always admired L’Occitane and its beautiful lifestyle brands anchored in their deep commitment to sustainability, and we are thrilled to have found a home with the Group to continue to drive our explosive growth,” noted Heela Yang, EO and co-founder of Sol de Janeiro. “It has been my dream to reach all corners of the globe with the warmth and the joy of the brand and our exceptional iconic products.  Furthermore, we are ecstatic to have found a partner who so deeply respects the brand vision and values of inclusivity, joy and self-celebration. Together with the Group’s entrepreneurial leadership and global support, we are confident that the brand will flourish and grow into a leading lifestyle skincare brand.” 
 
L’Occitane International S.A’s brands also include L’Occitane en Provence, Melvita, Erborian, L’Occitane au Brésil, LimeLife by Alcone and Elemis.