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The French cosmetics retailer L'Occitane has attracted interest from global private equity groups such as Advent International, suggesting the possibility of buying a company with a market value of $ 2.7 billion .
The interest comes eight years after L'Occitane, which has its roots in Provence in the south of France, has introduced its shares to the Hong Kong coast after joining the wave of high-end brands in pursuit of Asian consumers.
Advent's interest has been confirmed by two people with first-hand knowledge of the Boston-based buyout group's thinking. The interest of the company can be followed by rivals like the private equity sector, overflowing with cash, looking for opportunities.
For example, last year, CVC hired Emmanuel Osti, former executive of L'Occitane, to continue the acquisition of The Body Shop, but lost to another bidder.
People who followed the situation around L'Occitane said other buyout funds and industry peers could also consider an offer for the company. "Some people take a look at it early," said one of these people.
It was unclear whether there was a formal sales process or whether Advent's interest would lead to an official bid, added these people.
L'Occitane, Advent International and CVC refused to comment.
Any purchase of L'Occitane would allow a buyer to invest in the rapidly growing cosmetics and skin care market, which is booming thanks to the expansion of the global middle class and the increase in number of Chinese consumers traveling around the world. Last year, the French cosmetics group L'Oréal sold The Body Shop to Natura Cosmeticos, Brazil, for € 1 billion.
L'Occitane en Provence, more commonly known as L'Occitane, manufactures and sells beauty and wellness products containing natural and organic ingredients.
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The group was founded more than 40 years ago by Olivier Baussan, who began by creating cosmetics from the flora of his native Provence. After the acquisition of a former soap factory in 1976, he revives the traditional art of making vegetable-based soaps.
Austrian billionaire Reinold Geiger, the first president of L & # 39; Occitane, invested for the first time in the company in 1994. Over the past two decades, Geiger has overseen its global expansion of 1,555 stores managed in 90 countries and employing over 8,500 people. according to the website of L & # 39; Occitane.
Earlier this week, L'Occitane announced that sales on a like-for-like basis increased by 4.9% to 595.4 million euros on September 30th. Sales increased in the United States, Hong Kong and China.
The group reported operating profit of 5.8 million euros during the period, down 57.8%, and a net profit down 5.9 million euros. euros, down 47.9%, mainly due to larger investments in advertising and marketing events. L'Occitane's share fell by 8% on the Hong Kong Stock Exchange on Tuesday following the results. They increased by 1.5% for the year.
The appetite for private capital for makeup and skincare companies has intensified recently.
Nestlé has hired bankers for the potential divestment of its $ 8 to $ 10 billion skin care unit, which should attract some of the biggest names in private equity.
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