Bluegem agrees sale of Dr Vranjes
JANUARY 2024
Bluegem announces the Sale of Dr. Vranjes Firenze to L’OCCITANE Group
BLUEGEM, the specialist pan-European private equity fund with a rich history in consumer investing since 2007, is excited to announce the sale of the leading luxury home fragrance brand, Dr. Vranjes Firenze, to L’OCCITANE Group. While the financial terms of the transaction remain confidential, the sale remarks a significant milestone in the brands successful development.
Since acquiring a majority stake in Dr. Vranjes Firenze in 2017, BLUEGEM has overseen the brand’s evolution from a predominantly domestic and retail-distributed business to a globally recognized omnichannel market leader. Under the stewardship of BLUEGEM, Dr. Vranjes has more than tripled in sales, surpassing €42 million in 2023, with an EBITDA margin exceeding 30%.
The past six years have witnessed Dr. Vranjes achieving significant growth and profitability, with strategic channel diversification yielding a substantial increase in digital sales, which now constitute over a quarter of total revenue. The brand’s foray into new geographic markets, particularly in the Middle East and Asia, along with the introduction of innovative new product lines such as personal fragrances and scented candles, have propelled its expansion.
With a robust retail network of 28 mono-brand stores and 650 points of sale, Dr. Vranjes Firenze has solidified its international presence, delivering the quintessence of Italian luxury to a discerning global clientele. The support of BLUEGEM has been instrumental in maintaining Dr. Vranjes’ high EBITDA margin while significantly investing in the organisation, nearly tripling the workforce, and consistently committing to sustainability and social responsibility, including fostering a majority female workforce and a robust local supply chain.
Emilio Di Spiezio Sardo, BLUEGEM Founding Partner, expressed the fund’s pride in the company trajectory:
“The success of the Dr Vranjes story aligns to the strategic vision of BLUEGEM, nurturing businesses with stable consumer demand, driven by premium yet affordable products, with consumable and repeat aspects ensuring business resilience through macroeconomic cycles. We extend our deepest gratitude to Dr. Paolo Vranjes, for his visionary leadership, innovative spirit and invaluable partnership.”
Constantin Rojahn added:
“Dr. Vranjes’s journey under the guidance of BLUEGEM has been remarkable, achieving impressive growth through a strategic push into online channels, the successful penetration of new international markets, and the launch of new product lines. 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. Lastly, we would like to extend our appreciation to board director Massimo Saracchi for his significant contributions to the brand’s development.”
Paolo Vranjes, Founder and Chairman of Dr. Vranjes Firenze, remarked on the brand’s achievements with BLUEGEM and its future with L’OCCITANE Group:
“BLUEGEM supported our strategic vision and enabled meaningful growth while honouring the rich heritage of Dr. Vranjes. With the support of BLUEGEM we have reached significant milestones, and it is with great pride that I hand over the legacy of Dr. Vranjes to the L’OCCITANE Group, a group known for its distinguished heritage and expansive global reach."
The completion of the transaction is expected at 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 advised by Legance, Skadden and Lempriere Wells.
About Bluegem Capital Partners LLP
BLUEGEM is a European specialist private equity firm investing in consumer staple businesses across the value chain underpinned by non-discretionary demand and supported by megatrend tailwinds. The BLUEGEM Investment Team work alongside experienced Portfolio Management and Functional Experts, to deploy a proven toolkit for accelerating value creation. The BLUEGEM value acceleration playbook is underpinned by data analytics and includes, among other things, 360-degree digitalisation of the businesses (including the use of artificial intelligence), international expansion and product innovation. With a track record of investing across Europe through different economic cycles, BLUEGEM focus on six distinct consumer segments: Beauty & Personal Care, Home Care, Baby Care, Pet Care, Food & Beverage and Health & Wellbeing. For more information, visit bluegemcp.com.
About the L’OCCITANE Group
The L’OCCITANE Group is a leading international manufacturer and retailer of premium and sustainable beauty and wellness products. The Group operates in 90 countries worldwide and has 3,000 retail outlets, including over 1,300 of its own stores. Within its portfolio of premium beauty brands that champion organic and natural ingredients are: L’OCCITANE en Provence, Melvita, Erborian, L’OCCITANE au Brésil, LimeLife by Alcone, ELEMIS, Sol de Janeiro and Grown Alchemist. With its nature-positive vision and entrepreneurial ethos, L’OCCITANE Group is committed to investing in communities, biodiversity, reducing waste and to finding sustainable solutions to create a better and healthier planet.
The mission statement of the Group is: With empowerment we positively impact people and regenerate nature. The L'OCCITANE Group is a certified B CorporationTM .
For more information about our people and our brands, visit us at https://group.loccitane.com
About Dr. Vranjes Firenze
Dr. Vranjes Firenze, created by Dr. Paolo Vranjes in 1983, encapsulates the essence of Florentine artisanship combined with the innovation of fragrance science. For over 40 years, the brand has been at the vanguard of luxury home scents, with a reach spanning over 75 countries and a robust network including 28 monobrand stores and 650 points of sale. With an emphasis on in-house production and R&D, Dr. Vranjes has consistently delivered 'Made in Florence' experiences through its celebrated home diffusers, scented candles and a growing line of personal fragrances, destined to become an integral part of the brand’s prestigious portfolio. For further insights, visit drvranjes.com.