L'Oréal announced that it has signed an agreement with Natura &Co to acquire Aēsop, the Australian luxury cosmetics brand. The deal values Aēsop at $2.525 billion (almost €2.3 billion) in enterprise value. This is a record acquisition for the French group, which has big ambitions and promises the brand the means to grow.
Founded in 1987, Aēsop is globally recognized for its skin, hair and body products. With its amber packaging, sustainable vegan formulas, natural ingredients, and personalized customer service, Aēsop has become a global brand available in high-end boutiques, beauty spaces, and luxury hotels around the world.
Aēsop is distributed in approximately 400 exclusive outlets in the Americas, Europe, Australia, New Zealand and Asia, with a nascent presence in China where the first store opened in 2022.
The brand had sales of $537 million in 2022 (€490 million).
Nicolas Hieronimus, CEO of L'Oréal groupe, said: "I am very pleased to welcome Aēsop and its teams to the L'Oréal Group. Aēsop embodies avant-garde beauty: not only are its products made with the utmost care and exceptional attention to detail; they are also a superb combination of urban modernity, hedonism and recognized luxury. Aēsop is taking advantage of all of today's ascendant consumer trends, and L'Oréal will help accelerate its enormous growth potential, particularly in China and in travel retail."
Commenting on the acquisition, Cyril Chapuy, President of L'Oréal Luxe, added: "My team and I are thrilled that Aēsop is joining L'Oréal Luxe's portfolio of iconic global brands. Aēsop holds a unique position in the global luxury beauty market thanks to a vision rooted in design, the high efficacy and sensoriality of its products and its customer-focused retail philosophy. We look forward to welcoming Michael O'Keeffe, Aēsop's Chief Executive Officer, and his experienced and passionate teams to continue to develop the brand's remarkable potential together, cultivating its unique character and values. We are confident that Aēsop will join the Division's club of billionaire brands, making a significant contribution to L'Oréal Luxe's growth in the years to come."
Fábio Barbosa, general manager of Natura &Co, said:"The sale of Aēsop marks the beginning of a new development cycle for Natura &Co. With a strengthened financial structure, a clean balance sheet, and strict financial discipline, Natura &Co will be able to focus more on its strategic priorities, including its investment plan in Latin America. We will also be able to continue to focus on strengthening The Body Shop (sold by L'Oréal) and refocusing the Avon International footprint. We are proud of Aēsop's remarkable success and are extremely grateful to all the Aēsop teams who have contributed immensely not only to the success of the brand, but also to making Natura &Co what it is today. We are confident that Aēsop's growth will continue under the L'Oréal umbrella and we wish Aēsop every success in this new chapter for the future."
This acquisition is subject to certain customary regulatory approvals and other customary closing conditions.
