France: French beauty giant L’Oreal has acquired Australian luxury skincare brand Aesop in a deal worth $2.53 billion. The acquisition was made with Brazil’s Natura & Co, which had owned Aesop since 2012.
The deal is expected to be completed in the second half of this year, pending approval from regulatory authorities. L’Oreal said in a statement that the acquisition would enable it to further expand its portfolio of high-end skincare brands.
“Aesop taps into all of today’s ascending currents and L’Oreal will contribute to unleash its massive growth potential, notably in China and travel retail,” L’Oreal CEO Mr. Nicolas Hieronimus remarked in the statement.
Aesop was founded in Melbourne in 1987 and has since become known for its premium range of botanical-based skincare and haircare products. It operates in 27 countries worldwide and has more than 300 stores and counters. Natura & Co acquired Aesop for $71 million in 2012, and the brand has since grown significantly, with sales reportedly reaching $245 million in the 2020 financial year.
“We have great confidence that Aesop will join the L’Oreal Luxe Billionaire brands club and therefore contribute significantly to the growth of the division in the years to come,” stated Mr. Cyril Chapuy, president of the group’s luxury division L’Oreal Luxe, adding that he looked forward to welcoming Aesop CEO Michael O’Keeffe and his teams.
The acquisition is L’Oreal’s biggest since it purchased skincare company Skinceuticals in 2005 for $45 million. It also comes amid a growing trend towards natural and sustainable beauty products, with Aesop’s focus on botanical-based ingredients aligning with this trend.
Natura chief executive Mr. Fabio Barbosa cited that “the divestment of Aesop marks a new development cycle for Natura & Co. With a strengthened financial structure and a deleveraged balance sheet, Natura & Co, exercising strict financial discipline, will be able to sharpen its focus on its strategic priorities, notably our investment plan in Latin America.”
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