L’Occitane disclosed the details of the transaction for the sale of business in Russia

The value of the transaction for the sale of the Russian business of the French cosmetics company L’Occitane Group amounted to about $2.9 billion, follows from interim reporting data for the first half of the financial year 2023 (ends March 31), transmits RBC.

It is specified that the Russian side will pay this amount to the company for four years starting from 2025. The size of the tranches was approved, but not specified.

Under the terms of the deal, L’Occitane Group will have the option to buy back the asset within five years, starting in 2025. It is specified that the cost of the buyback will be determined by an independent expert appraisal, which will assess the fair value of the Russian business.

L’Occitane announced on the closure of the brand’s stores in Russia in April 2022 against the backdrop of the start of a special operation in Ukraine on February 24, 2022. In June, the deal to sell the Russian asset to local management was closed. As a result, 31% went to the general director of L’Occitane Rus Rostislav Kovalenko, top managers Natalya Milekhina, Olga Sabirova and Alexey Shumov received 23% each. Their shares are pledged to L’Occitane International.