Blackstone Nears Privatization Of L'Occitane - Ending Skin-Care Giant's 14-Year Hong Kong Stock Exchange Run: Report

Zinger Key Points
  • Blackstone nearing privatization deal with L'Occitane, ending its 14-year run on Hong Kong stock exchange.
  • Acquisition could see L'Occitane's owner Reinold Geiger receive over $2 billion in cash and result in combined entity.

Blackstone Inc. BX and L’Occitane’s owner Reinold Geiger are reportedly close to privatizing the skin-care company.

If the deal takes place, it will potentially terminate L’Occitane’s 14-year run on Hong Kong’s stock exchange, Bloomberg reported, citing people familiar with the matter.

As of December 31, 2023, Blackstone had $8.4 billion in total cash, cash equivalents, corporate treasury, and other investments and $16.9 billion of cash and net investments

The leading alternative asset manager is considering offering debt financing for the acquisition, the report read.

An announcement could arrive within days. Trading of L’Occitane was halted in Hong Kong on Tuesday, awaiting a takeover code-related announcement.

Though discussions are advanced, setbacks are possible. 

Blackstone declined to comment to Bloomberg, and L’Occitane hasn’t responded yet, the report added.

Blackstone’s interest in L’Occitane was reported by Bloomberg in February. 

The company’s market value stands at approximately HK$43.6 billion ($5.6 billion). L’Occitane Chairman Geiger’s entity holds over 70% of the firm.

L’Occitane confronts a tough market in China with fierce competition from global giants like L’Oreal Co. LRLCF and Estee Lauder Companies, Inc EL offering frequent discounts, coupled with the rise of nationalist sentiments favoring domestic brands, Bloomberg added.

Read Next: ‘Magnificent 7’ Expected To Do Heavy Lifting Yet Again For Q1 Earnings, But Will The Other ‘493’ On S&P 500 Fire On All Cylinders? Analyst Weighs In

According to Benzinga Pro, BX stock has gained over 58% in the past year. Investors can gain exposure to the stock via EA Series Trust WHITEWOLF Publicly Listed Private Equity ETF LBO

 and Gabelli ETFs Trust Gabelli Financial Services Opportunities ETFGABF.

Price Action: BX shares are trading higher by 0.37% to $129.80 premarket on the last check Tuesday. 

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Shutterstock

Market News and Data brought to you by Benzinga APIs
Posted In: EquitiesNewsMarketsMediaGeneralAI GeneratedBriefsEurasia
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!