France-based beauty retailer L’Occitane Group has purchased a controlling stake in premium beauty brand Sol de Janeiro.
Founded in 2015, Sol de Janeiro offers body care, fragrance and hair care products made with ingredients sourced sustainably from Brazil.
The company distributes products through its website and at many premium retailers worldwide.
The financial terms of the transaction have not been disclosed, but it is reportedly valued at $450m.
L’Occitane vice chairman and CEO André Hoffmann said: “We are delighted to be further expanding our brand portfolio and accelerating our transformation into a multi-brand and geographically balanced group.
“With a compelling brand story and an experienced and entrepreneurial management team, Sol de Janeiro reflects our values and premium beauty image.”
The acquisition is part of L’Occitane’s strategy to own a portfolio of premium beauty brands across all major geographical regions.
Following the deal, the company will own an 83% indirect interest in Sol de Janeiro.
In a statement, L’Occitane said: “Sol de Janeiro is a strategic fit for us in terms of brand recognition and identity, product quality and management capability, as well as growth, profitability and cash generation prospects.”
Sol de Janeiro will become a majority-owned subsidiary of L’Occitane and will use L’Occitane’s international presence to enter new markets.
Sol de Janeiro CEO and co-founder Heela Yang said: “I have always admired L’Occitane, a beautiful lifestyle brand anchored in a deep commitment to sustainability, and we are thrilled to have found a home with the Group to continue to drive our explosive growth.
“Furthermore, we are ecstatic to have found a partner who so deeply respects our brand vision and values of inclusivity, joy and self-celebration.”
L’Occitane’s brand portfolio also includes L’Occitane en Provence, Melvita, Erborian, L’Occitane au Brésil, LimeLife by Alcone and Elemis.