France-based beauty retailer L’Occitane Group has purchased a controlling stake in premium beauty brand Sol de Janeiro.
Founded in 2015, Sol de Janeiro offers body care, fragrance and hair care products made with ingredients sourced sustainably from Brazil.
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The company distributes products through its website and at many premium retailers worldwide.
The financial terms of the transaction have not been disclosed, but it is reportedly valued at $450m.
L’Occitane vice chairman and CEO André Hoffmann said: “We are delighted to be further expanding our brand portfolio and accelerating our transformation into a multi-brand and geographically balanced group.
“With a compelling brand story and an experienced and entrepreneurial management team, Sol de Janeiro reflects our values and premium beauty image.”
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By GlobalDataThe acquisition is part of L’Occitane’s strategy to own a portfolio of premium beauty brands across all major geographical regions.
Following the deal, the company will own an 83% indirect interest in Sol de Janeiro.
In a statement, L’Occitane said: “Sol de Janeiro is a strategic fit for us in terms of brand recognition and identity, product quality and management capability, as well as growth, profitability and cash generation prospects.”
Sol de Janeiro will become a majority-owned subsidiary of L’Occitane and will use L’Occitane’s international presence to enter new markets.
Sol de Janeiro CEO and co-founder Heela Yang said: “I have always admired L’Occitane, a beautiful lifestyle brand anchored in a deep commitment to sustainability, and we are thrilled to have found a home with the Group to continue to drive our explosive growth.
“Furthermore, we are ecstatic to have found a partner who so deeply respects our brand vision and values of inclusivity, joy and self-celebration.”
L’Occitane’s brand portfolio also includes L’Occitane en Provence, Melvita, Erborian, L’Occitane au Brésil, LimeLife by Alcone and Elemis.
