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Bluegem, a pan-European private equity fund specializing in consumer goods, has announced the sale of the luxury home fragrance brand, Dr. Vranjes Firenze, to the French multinational L’Occitane, a chain of beauty products. The price and financial details of the deal have not been disclosed, but the change of hands marks a significant milestone in the development of the Florentine brand, born in 1983.
A story of value creation
After acquiring a majority stake in the company in 2017, Bluegem has overseen its evolution from a predominantly domestic brand to a global one, becoming a globally recognized name. Under the guidance of the fund, Dr. Vranjes has more than tripled sales, exceeding 42 million euros in 2023, with a revenue margin of more than 30%.
Over the last six years, the significant increase in profitability has been the result of internet sales, which today account for 25% of total turnover. The brand’s expansion into new geographic markets, particularly the Middle East and Asia, along with the introduction of innovative new product lines such as personal perfumes and scented candles, ultimately drove the expansion.
The details
The brand has a network of 28 mono-brand stores and 650 points of sale. Emilio Di Spiezio Sardo, founder of Bluegem, commented: «The success of the Dr. Vranjes story aligns with our strategic vision, which cultivates companies with stable demand from consumers, driven by premium products but with accessible prices and recurring consumption, which ensures business resilience through macroeconomic cycles. We extend our deepest gratitude to Paolo Vranjes, for his visionary leadership, innovative spirit and invaluable partnership.”
Signing is expected by the end of the first quarter of 2024. The sellers were advised by Rothschild & Co, BPER, Deloitte, New Deal Advisors, Latham & Watkins, Studio Galgano, DLA Piper, Gattai Minoli and ERM. The buyer was assisted by Legance, Skadden and Lempriere Wells.