The L’Occitane Group is dipping its toe into Brazilian beauty with the acquisition of an 83 percent stake in Sol de Janeiro, the global prestige body care line. Founded in the U.S. in 2015 as a results-driven premium body care brand with ingredients sustainably sourced from Brazil, Sol de Janeiro is one of the fastest-growing premium skin care brands in North America, with cross-category success across body care, fragrance and hair care products. It sells both directly to consumers through its website and through various premium retailers across the globe.

The acquired stake is based on a valuation of $450 million. Upon closing, Sol de Janeiro will become a majority-owned subsidiary of the Group. L’Occitane looks to leverage its international presence to expand Sol de Janeiro into new and existing markets.

According to Jefferies, L’Occitane will help roll out the brand globally. Jefferies added that about 65 percent of Sol de Janeiro’s sales came from online with about 64 percent of sales coming from Gen Z and millennials. The deal looks to help L’Occitane market to this demographic. Based on Jefferies’ estimates, the acquisition will add about 5 percent to L’Occitane’s sales and about 6 percent to its net profit on an annualized basis.

Heela Yang, Chief Executive Officer and Co-Founder of Sol de Janeiro, said, “It’s 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, a beautiful lifestyle brand anchored in their deep commitment to sustainability, and we are thrilled to have found a home with L’OCCITANE to continue to drive our incredible growth. Furthermore, we are ecstatic to have found a partner who so deeply respects the brand vision and values of inclusivity, joy and self-celebration. Together with L’OCCITANE’s entrepreneurial leadership and global support, we are confident that the brand will flourish and grow into a leading lifestyle skincare brand.”

Heela will remain in her role as CEO, rolling over a significant amount of her equity to continue to drive growth. She said, “My commitment to growing Sol de Janeiro and leading the team I worked hard to build remains unwavering, and I am very excited about continuing the entrepreneurial culture of the company with L’Occitane as a strategic partner.”

André Hoffmann, Vice-Chairman & Chief Executive Officer of L’Occitane, said, “Sol de Janeiro aligns squarely with our vision to accelerate growth and create value through strategic partnerships. With a compelling brand story and an experienced and entrepreneurial management team, Sol de Janeiro reflects our values and premium beauty image. It has enormous potential for growth in new and existing markets and channels around the world.”

Sol de Janeiro had been backed by Prelude Growth Partners, a leading consumer-oriented growth private equity fund since mid-2019. Financo Raymond James served as exclusive financial advisor to Sol de Janeiro, and Cooley served as legal advisor.

L’Occitane operates six brands, L’Occitane en Provence, Melvita, Erborian, L’Occitane au Brésil, LimeLife by Alcone and Elemis.