L’Occitane International S.A.: Acquisition of equity investment in LimeLight by Alcone and formation of a joint venture

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.


VOLUNTARY ANNOUNCEMENT
ACQUISITION OF EQUITY INTEREST IN LIMELIGHT BY ALCONE AND FORMATION OF A JOINT VENTURE

The board of directors (the “Board”) of L’Occitane International S.A. (the “Company”) and its subsidiaries (the “Group”) is pleased to announce that the Board has approved an investment (the “Investment”) into the business of “LimeLight by Alcone” in the United States of America (“LimeLight USA”), pursuant to which the Company will acquire a 40% interest in LimeLight USA. The brand was founded by shareholders of the Alcone Company, which creates and sells professional makeup for artists and makeup enthusiasts. In addition, the Company together with LimeLight USA will form a joint venture (the “Joint Venture”), in which the Company will hold a 60% controlling stake.

Through the Joint Venture, the Company plans to leverage on its global exposure to expand the business model outside of the United States.

Michele M. Gay and Madison Mallardi, co-founders and co-CEOs of LimeLight USA, will retain control over LimeLight USA and will continue to lead its impressive success. They will also contribute to the set-up and development of the Joint Venture.

INFORMATION ON LIMELIGHT USA

LimeLight USA was founded by the shareholders of Alcone Company in 2015 and offers all-natural skincare lines and personalised colour makeup palettes, helping women everywhere look their best every day with its products. LimeLight USA utilises a unique distribution network with beauty guides and an online presence in the USA.

REASONS FOR AND BENEFITS OF THE INVESTMENT

The Group is a global, natural ingredient-based cosmetics and well-being products manufacturer and retailer with origins and true stories from Provence and around the world. The Group has four brands (L’Occitane en Provence, Melvita, Erborian and L’Occitane au Bre ́sil) in its portfolio and is committed to developing and retailing high quality products that are rich in natural ingredients of traceable origins, while also respecting the environment.

The Investment fits into the Group’s strategy of building a leading portfolio of cosmetics brands based on natural ingredients, while also speeding up its expansion into the colour cosmetics sector. In addition, the Investment will add further value to the Group’s ongoing omni-channel expansion strategy through the incorporation of LimeLight USA’s unique distribution and online sales business models. LimeLight USA would also make use of the Group’s dynamic R&D capabilities and production facilities for its future products.

The Board believes the strategies to be implemented for the LimeLight business will help the Group’s future growth globally and will be complementary to the Group’s existing business strategy.

The Board considers that the terms of the Investment are fair and reasonable, and are in the interest of the Group and its shareholders as a whole.

As none of the applicable percentage ratios as defined in Rule 14.07 of the Rules Governing the listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”) in respect of the transaction exceeds 5%, the transaction does not constitute a notifiable transaction under Chapter 14 of the Listing Rules.

To the best of the knowledge, information and belief of the directors of the Company, having made all reasonable enquiries, none of the Alcone Company, LimeLight USA, Michele M. Gay and Madison Mallardi is a connected person (as defined under the Listing Rules) of the Company and the transactions contemplated do not constitute connected transactions under Chapter 14A of the Listing Rules.

This announcement is made on a voluntary basis.

Hong Kong, 16 May 2017

By Order of the Board
L’Occitane International S.A.
Reinold Geiger
Chairman

As at the date of this announcement, the executive directors of the Company are Mr. Reinold Geiger (Chairman and Chief Executive Officer), Mr. André Hoffmann (Vice-Chairman & Managing Director Asia-Pacific), Mr. Domenico Trizio (Group Managing Director), Mr. Thomas Levilion (Group Deputy General Manager, Finance and Administration) and Mr. Karl Guénard (Joint Company Secretary), the non-executive director of the Company is Mr. Martial Lopez and the independent non-executive directors of the Company are Mrs. Valérie Bernis, Mr. Charles Mark Broadley, Mr. Pierre Milet and Mr. Jackson Chik Sum Ng.