L’Occitane Buys Home Fragrance Brand Dr. Vranjes Firenze
LONDON — L’Occitane has made its first acquisition of the year, buying the Italian home fragrance brand Dr. Vranjes Firenze from Bluegem Capital Partners in deal valued at about 150 million euros.
The completion of the transaction is expected at the end of the first quarter.
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L’Occitane, a French company listed on the Hong Kong Stock Exchange, will add Dr. Vranjes to a portfolio that includes Melvita, Erborian, Elemis, Sol de Janeiro and Grown Alchemist.
Bluegem purchased its majority stake in Dr. Vranjes six years ago, and said it helped the company triple sales to more than 42 million euros in 2023, with an EBITDA margin exceeding 30 percent.
Growth came from a beefed-up international sales effort across 28 exclusive stores and 650 retail points, and expansion into new markets, including the Middle East and Asia.
Bluegem also worked with Dr. Vranjes management to launch new product lines, including personal fragrances and scented candles.
Emilio Di Spiezio Sardo, Bluegem founding partner, said: “We extend our deepest gratitude to Dr. Paolo Vranjes for his visionary leadership, innovative spirit and invaluable partnership.”
Constantin Rojahn, Bluegem investment director, said “the dedication and expertise of the management team led by CEO Giuseppe Colotto have been fundamental to the brand’s ongoing progress, and will remain crucial as it continues to evolve.
“We would like to extend our appreciation to board director Massimo Saracchi for his significant contributions to the brand’s development,” he said.
Dr. Paolo Vranjes launched the collection in 1983, with a focus on luxury home scents and products such as diffusers.
In a separate interview, Rojahn said the launch of personal fragrance, as well as international expansion, helped to supercharge growth.
“Dr. Vranjes is now a global business that’s strong in Europe, the U.S., the Middle East, Japan and China. The customer is a discerning one, and we launched the fragrance in response to their requests,” he said.
There are six eau de parfums on offer with names such as Rosa Tabacco, Ginger Lime and Peonia Black Jasmine. They retail for 139 pounds for a 100ml bottle, according to the brand’s website. There is also a body care line, with a scented lotion, powder, body and hair mist.
Rojahn added that Bluegem would continue to invest in beauty and fragrance. “Personal fragrance in particular is a very dynamic market, and we’ve seen the industry shift its focus to niche, fine fragrances.”
The high-end luxury fragrance segment is a hot commodity these days, and among the fastest growing in beauty. It’s been registering double-digit growth, plus high profitability and revenue recurrence.
Last summer the newly formed Kering Beauté purchased the historic fragrance house Creed. Its plan is to use Creed, a highly profitable, 300 million euro business, as a platform and accelerator for its burgeoning beauty division.
Bluegem is a European specialist private equity firm investing in consumer staple businesses. The company said it focuses on six distinct consumer segments including beauty, personal and home care, food and beverage and health and wellbeing.
It is the former owner of Liberty in London and Jack Wills. In 2020, as reported, it took a stake in Panzeri Diffusion, now known as Beautynova, an Italian company trading in the professional hair care category. It also has stakes in the skin care and makeup brands QMS Medicosmetics and Iconic London.
Advisers on the deal included Lempriere Wells, Rothschild & Co. and Deloitte.
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