L’Oreal, a French cosmetics group, has agreed to acquire Aesop, an Australian luxury brand known for its hand soaps and unique amber packaging, for $2.53 billion, according to an announcement made on Monday. This acquisition marks L’Oreal’s largest brand acquisition and the third largest ever of an Australian consumer products company, according to Dealogic data. L’Oreal hopes that this deal will help the company expand its presence in the luxury cosmetics market. For Natura, the sale provides financial relief and supports the company’s focus on strategic priorities, including the integration of its Latin America operations and the continued improvement of The Body Shop’s business.
Aesop’s strong performance across all regions, including its recent entry into the Chinese market, has made it a highly sought-after brand, with multiple companies vying for ownership. The brand is also Natura’s most profitable venture, with almost 400 stores in cities worldwide. The acquisition, which is expected to be finalized in the third quarter of 2023 and is subject to regulatory approvals, will be paid in cash.
L’Oreal CEO Nicolas Hieronimus believes that Aesop aligns well with current trends and has ‘massive growth potential,’ particularly in China and travel retail. Aesop, which was established in 1987 and offers skin, hair, and body care products, will help L’Oreal expand its reach in the luxury cosmetics market. For Natura, the sale of Aesop is part of a broader organizational shakeup that began with former CEO and executive chairman Roberto Marques stepping down in June 2022 and Fabio Barbosa taking over. The sale will support Natura’s financial deleverage and focus on strategic priorities.
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