Group takes 40% Stake in LimeLight’s business in the United States
A first step towards joint venture to expand LimeLight’s business model outside of the United States
Committed investment to speed up expansion into color cosmetics and new business model
L’Occitane International S.A., a global, natural ingredient-based cosmetics and well-being products company, with origins and true stories from Provence and around the world, announces that its board of directors has approved an investment in LimeLight by Alcone (“LimeLight”).
Founded in 2015 by the Alcone Company, LimeLight by Alcone offers all-natural skincare lines and personalized color makeup palettes, helping women everywhere look their best every day with its products. It utilizes a unique distribution network with beauty guides and an online presence in the USA.
Under the terms of the investment, the Group will acquire a 40% stake in LimeLight’s business in the United States. It also plans to invest in a majority stake in a joint venture with LimeLight to develop the business model outside of the United States. The investment is a good fit in terms of entrepreneurial spirit and management style, with LimeLight’s existing management team to remain in place.
The investment fits into the Group’s strategy to build a leading portfolio of cosmetic brands based on natural ingredients, while also speeding up its expansion into the color cosmetic category. It will also add further value to its ongoing omni-channel expansion strategy through the incorporation of LimeLight’s unique distribution and online sales business model. LimeLight will also make use of the Group’s dynamic R&D capabilities and production facilities for its future products.
Reinold Geiger, Chairman and Chief Executive Officer of L’Occitane, said, “As we expand into the color cosmetics sector and explore the growth potential from new business ideas, we have been actively looking for quality brands that align with our corporate ethos of using the best natural ingredients and respecting the environment, while also offering a high potential return on investment. We have found the ideal partner with LimeLight, the company has great potential in the US and internationally and there is an excellent understanding and a true fit with the management.”
Michele Gay, LimeLight’s co-founders and co-CEO, commented, “Our two companies share so many common visions and values. We applaud L’Occitane’s forward-thinking understanding that connecting with consumers in this new digital age is not just about programming another device application, but also building and training a sales force that can capture a vast social media following and then help that following discover personalized beauty solutions through out-of-store, one-on-one relationships.”