According to an article by Cosmetics Business, French beauty brand manufacturer, L'Occitane, has acquired a majority stake of body care brand, Sol de Janeiro.
Sol de Janeiro, who is best-known for its cult product, Brazilian Bum Bum Cream, was founded in 2015 and has expanded from body care into hair, fragrance, bath and lip products over the years.
L'Occitane, who also owns popular brands Elemis and Erborian, has now acquired 83% of Sol de Janeiro based on a valuation of US$450 million. And according to the company, the deal will support its plans to build a strong portfolio of brands in all major geographic regions.
“In the past few years, the group has accelerated its M&A activity with the support of the strong cash generative qualities of our core L’Occitane en Provence brand, and more recently the Elemis brand,” L’Occitane CEO, André Hoffmann, said, adding that Sol de Janeiro complements L'Occitane's premium brand image.
"It has enormous potential for growth in new and existing markets and channels around the world and will be immediately accretive to the group’s results, contributing to healthy and profitable growth in the short and medium term.”
Sol de Janeiro CEO and co-founder, Heela Yang, also said: "It has been my dream to reach all corners of the globe with the warmth and the joy of the brand and our exceptional iconic products. I have always admired L’Occitane and its beautiful lifestyle brands anchored in their deep commitment to sustainability, and we are thrilled to have found a home with the group to continue to drive our explosive growth.”
Image source: Sol de Janeiro