L’Occitane sells Grown Alchemist 2 years after acquiring the brand

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Dive Brief:

Grown Alchemist is changing hands again. L’Occitane Group has sold a controlling majority stake in the Australian skin care brand to André Hoffmann, L’Occitane Group’s former vice chairman and CEO, for 28 million euros (about $30.2 million). Hoffmann served in those roles until Sunday and remains a board member.
Through the deal, Grown Alchemist is now privately held, according to a Tuesday announcement. Anna Teal, Grown Alchemist’s CEO, has become a minority shareholder.
The move provides the skin care brand with “increased business agility,” allowing it to focus on large-scale partnerships and accelerate international growth in key markets like North America and China.

Dive Insight:

Just two years after acquiring Grown Alchemist, L’Occitane Group is selling it.

The beauty conglomerate, which also houses brands like Sol De Janeiro, Elemis and Melvita, in March 2022 announced it acquired majority control over Grown Alchemist. L’Occitane at the time said the deal with Grown Alchemist — which appealed to “more health-conscious, influential Millennial and Gen Z customers” — would help L’Occitane grow its international presence and reach new consumers. Hoffmann served as CEO and vice chairman of L’Occitane Group at the time of that deal.

“Since [Grown Alchemist’s] initial acquisition, and considering changing global economic and market conditions and the material growth of other brands within its portfolio, the company is in the process of adjusting its strategy,” L’Occitane Group said in a Tuesday filing. “Accordingly, as part of this adjustment of strategy, the company believes that the disposal would help the company focus its resources and attention on its core brand L’Occitane en Provence, and accelerate the dynamic growth of its other brands, which would in turn help improve the Group’s overall financial performance.”

According to a presentation outlining the company’s third quarter, in the nine-month period ending Dec. 31, L’Occitane en Provence represented the greatest share of total company sales at 56.8%, followed by Sol de Janeiro (24.8%), Elemis (10.3%) and “others” — which includes LimeLife, Melvita, Erborian, L'Occitane au Brésil and Grown Alchemist — at 8.2%.

The deal with Hoffmann also means Grown Alchemist is once again privately held.

“The L'Occitane Group has been an incredible partner and supporter of the business since its acquisition of a majority control in 2022, enabling us to establish a strong foundation for growth, a stellar team, investment in product enhancements and new market entries,” Teal said in a statement. “That being said, we see this acquisition of Grown Alchemist as an opportunity to accelerate brand growth, as we gain more strategic flexibility and autonomy outside of a listed group.”

The purchasing group pointed to a strong brand identity, award-winning products and sustainable credentials as key reasons for wanting to acquire Grown Alchemist from L’Occitane Group. “Operating as a private company with a distinctive investment strategy as well as an independent management team that would be fully dedicated to the growth ambitions of this brand, [Grown Alchemist] will enjoy more business flexibility pursuing custom activation strategies, particularly with regards to its unique partnerships with lifestyle and music brands,” the filing stated.

Grown Alchemist was founded in 2008 by brothers Jeremy and Keston Muijs and has a product range that extends from body to hair care products. The brand in the fall of 2020 opened a flagship store in Melbourne, Australia, and said it would focus on omnichannel expansion to drive global sales. Grown Alchemist sells in more than 40 countries and is available in retailers like Sephora and Credo Beauty, as well as some hotels and spas.