L’Oréal has entered into an agreement with Natura & Co to acquire Australian luxury beauty brand Aesop for $2.525 billion.
Aesop currently operates around 400 points of sale across the Americas, Europe, Australia, New Zealand, and Asia, with a nascent footprint in China where the first store opened in 2022.
Created in 1987, Aesop sells skin, hair and body products with plant-based ingredients and sustainable vegan formulations in signature amber packaging.
The brand posted sales of $537m in 2022. The acquisition is subject to certain regulatory approvals and other customary conditions.
“Aesop is the epitome of avant-garde beauty, whose products are not only made with great care and exceptional attention to detail; they are a superb combination of urbanity, hedonism and undeniable luxury,” said L’Oréal CEO Nicolas Hieronimus.
“Aesop taps into all of today’s ascending currents and L’Oréal will contribute to unleash its massive growth potential, notably in China and travel retail,” he added.
Cyril Chapuy, President of L’Oréal Luxe, said: “Aesop holds a very unique positioning on the global luxury beauty market thanks to its design led brand essence, its highly efficacious and sensorial products as well as its customer-obsessed retail philosophy.
“We look forward to welcoming Aesop’s CEO Michael O’Keeffe and his experienced and passionate teams to continue to grow together the brand’s remarkable potential, by carrying on cultivating its uniqueness and its values.”
Natura & Co CEO Fábio Barbosa said: “The divestment of Aesop marks a new development cycle for Natura & Co. With a strengthened financial structure and a deleveraged balance sheet, Natura & Co, exercizing strict financial discipline, will be able to sharpen its focus on its strategic priorities, notably our investment plan in Latin America.
“We will also be able to concentrate on continuing to improve The Body Shop’s business and refocusing Avon International’s footprint.”
