The world leader in cosmetics announced this morning that it has signed an agreement with Natura & Co to acquire Aesop. The Australian high-end cosmetics brand is thus valued at 2.5 billion dollars.
Last January, a tug of war began between L’Oréal, LVMH and Shiseido for the purchase of Aesop, valued at that time at 2 billion dollars. After many discussions, the French beauty giant finally won.
Aesop is an Australian brand specializing in luxury beauty products, with over 370 points of sale worldwide, including 275 boutiques and 101 corners in department stores. In 2022, the brand, which belongs to the Brazilian group Natura & Co, achieved sales of $527 million, according to a statement.
According to L’Oreal’s CEO, Nicolas Hieronimus, this acquisition is as beneficial for his group as for the cosmetics brand founded in 1987: “Aesop takes advantage of all consumer trends and L’Oreal will help accelerate its enormous growth potential,” explains the French executive.
A newcomer in the L’Oréal Luxe range
Aesop marks its entry into the L’Oréal Luxe category, which includes such prestigious names as Lancôme, Yves Saint Laurent and Giorgio Armani. A category that occupied the first place in 2022 within the various divisions of the group, with 15 billion euros in sales.
This acquisition could lead to a wider international opening of the Australian brand but also to new projects and innovations.
“The sale of Aesop marks the beginning of a new development cycle for Natura &Co” explains Fabio Barbosa, CEO of Natura & Co in a statement. “With a strengthened financial structure, a healthy balance sheet and a strict financial discipline, Natura &Co will be able to focus more on its strategic priorities, including its investment plan in Latin America“, he added. he adds.
With this sale, the Brazilian group now wants to focus on strengthening its other brands such as The Body Shop and Avon International.
Aesop: a green brand
Founded by hairdresser Dennis Paphitis, Aesop is known for its skin, hair and body products. From recycled packaging components, sustainable vegan formulas and natural ingredients to carbon-neutral delivery, it has become an iconic, green and sustainable brand over the years. In addition to its boutiques and department stores around the world, it can be found in the bathrooms and spas of luxury hotels.
This acquisition marks another step towards L’Oréal’s sustainable and committed strategy.
Featured photo : © Aesop