L'Occitane billionaire owner Reinold Geiger mulls taking company private in potential $7 billion deal

L'Occitane International SA's billionaire owner Reinold Geiger is reportedly preparing to take the skin care giant private. The deal, including debt, could value the company at about $7 billion. Geiger may offer to buy the shares he doesn't already own at a price of HK$33 to HK$34 per share as early as next Monday, people familiar with the matter said.

The move could boost L'Occitane's corporate value to about 6.5 billion euros ($7 billion), known for its luxury skin care products and natural ingredients. The privatization effort is said to have received significant financial support from major financial institutions, including Blackstone Group's Tactical Opportunities Fund and Goldman Sachs Group Inc's asset management arm, with total funding of approximately €1.6 billion. Currently, an entity controlled by Geiger holds more than 70% of the company's shares. L'Occitane's shares have been suspended from trading on the Hong Kong Stock Exchange since April 9 in anticipation of an acquisition-related announcement.

The potential privatization comes 14 years after L'Occitane was listed on the Hong Kong stock exchange and marks a major strategic shift that could end its public trading. Geiger first became a minority shareholder in 1994 and later took on an operating role to revitalize the brand, and despite initial setbacks, he played an important role in L'Occitane's global expansion, particularly in Asia.