HONG KONG — In an effort to accelerate its expansion in the color cosmetics sector, L’Occitane International SA said it will increase its stake in cosmetics company LimeLight USA to 60.48 percent.
L’Occitane first obtained a 40 percent stake in LimeLight USA, which had been wholly owned by LimeLife, last May.
The new agreement will result in a share capital increase, which will convert $15,540,541 of the share premium reserve held by LimeLife into 15,540,541 shares in LimeLife to be issued to L’Occitane.
Plans to expand the brand internationally under the name LimeLife were also announced.
Created in 2015 by the Alcone Company, LimeLight uses direct-selling via its network of “beauty guides” as well as e-commerce for its skin care lines and personalized makeup palettes.
“The increase in stake enables us to gain greater control over LimeLife, which fits into our strategy of building a leading portfolio of cosmetics brands based on natural ingredients, while also speeding up our expansion into the promising color cosmetics sector,” said Reinold Geiger, chairman and chief executive officer of L’Occitane, in a statement.
“We will develop a specified distribution model outside of the USA by creating a global brand and product offering under the brand ‘LimeLife’ and provide operational support for LimeLife’s current and future subsidiaries and local sales forces across the world,” he continued. “We continue to believe that these strategies, which are already being implemented for LimeLife’s business in the USA, will help our future global growth and complement our existing business.”
L’Occitane International has four brands in its stable: L’Occitane en Provence, Melvita, Erborian and L’Occitane au Brésil.
Correction: An earlier version of this article stated that LimeLight would be rebranded as LimeLife. The U.S. business will continue to operate as LimeLight, however in other markets, it will be known as LimeLife due to intellectual property reasons.