Billionaire Reinold Geiger is making a fresh bid to privatize global cosmetics firm L’Occitane International SA, signaling a potential shift in ownership and succession plans. L’Occitane’s stock soared following reports that Blackstone Inc. is considering a buyout collaboration with Geiger, who holds a controlling stake in the skincare brand. This move comes amidst a series of changes in leadership, including Geiger stepping down as CEO in 2021 and announcing a new CEO to take over in April.
“As our group grows, we need to evolve,” Geiger stated in a recent announcement, hinting at the need for restructuring and succession planning. With over 70% ownership controlled by Geiger, valued at $2.4 billion, the future of his fortune remains a key aspect of the generational wealth transfer. It is yet to be revealed whether Geiger intends to pass the reins to one of his three sons, two of whom hold senior management positions within the company.
L’Occitane, founded in 1976, faced challenges before Geiger’s involvement but has since expanded globally, with 3,000 locations in 90 countries. Geiger’s previous consideration of taking the company private and a subsequent stock slump last year are now being revisited, with Blackstone’s potential involvement and calls from minority shareholder Butler Hall Capital for a US relisting.
Amidst speculations and strategic moves, the iconic skincare brand finds itself at a crossroads, with the chairman’s risk-taking nature and the dynamics of the global cosmetics market adding to the intrigue surrounding L’Occitane’s future.
