L'Occitane, the French beauty brand manufacturer, has acquired a majority stake of body care brand Sol de Janeiro.
The maker of Elemis and Erborian now owns 83% of Sol de Janeiro, best known for its Brazilian Bum Bum Cream, based on a valuation of US$450m.
According to L'Occitane, the deal with the US-based digital native brand will support its vision to build a portfolio of strong brands in all major geographic regions.
Meanwhile, Sol de Janeiro is now expected to grow its international business.
André Hoffmann, CEO of L’Occitane, said: “In the past few years, the group has accelerated its M&A activity with the support of the strong cash generative qualities of our core L’Occitane en Provence brand, and more recently the Elemis brand."
Hoffmann continued that Sol de Janeiro complements L'Occitane's premium brand image: "It has enormous potential for growth in new and existing markets and channels around the world and will be immediately accretive to the group’s results, contributing to healthy and profitable growth in the short and medium term.”
Founded in 2015, Sol de Janeiro has expanded from body care and into hair, bath, lip and fragrance.
Heela Yang, CEO and co-founder of Sol de Janeiro, said: "It has 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 and its beautiful lifestyle brands anchored in their deep commitment to sustainability, and we are thrilled to have found a home with the group to continue to drive our explosive growth."