In a bid to grow its global appeal and a younger consumer base, L’Occitane acquires Grown Alchemist, an Australian skin care brand. While L’Occitane will own a majority of the firm, the remaining portion of the company will continue to be owned by Grown Alchemist’s founders Keston Muijs and Jeremy Muijs.
According to a report by Jefferies, L’Occitane’s management expects the brand to achieve sales growth of 30 percent to 40 percent year over year globally. The report added that the acquisition will be funded by the company’s cash and that the closing of the deal is expected to be April 1.
Founded in Australia in 2008, Grown Alchemist is a premium clean beauty brand offering anti-aging products based on natural ingredients. The product range extends to nutricosmetics, body care, and hair care products.
The transaction looks to be in line with L’Occitane’s strategy of building a portfolio of premium beauty brands. As a clean beauty brand, Grown Alchemist will create sustainable sourcing and waste reduction synergies. It will also broaden the company’s international consumer base and market reach, given its appeal to health-conscious Millennial and Gen Z consumers. According to the Jefferies report, for the fiscal year ended June 2021, around 40 percent of Grown Alchemist sales came from the U.S. with the balance coming from the rest of the world.
André Hoffmann, Vice-Chairman and CEO of the L’Occitane Group, said of teh deal, “We are thrilled to support and nurture this ground-breaking, natural cosmeceutical brand, which encapsulates the entrepreneurial spirit of our group. With a unique and inspiring brand story and international fan base, Grown Alchemist is poised for international scalability and rapid growth.”
Grown Alchemist will become a non-wholly owned subsidiary and will run independently as do L’Occitane’s other recently acquired brands, including Elemis and Sol de Janeiro. Alice Wells, Managing Director, Lempriere Wells, acted as the advisor to the sellers in the transaction.