L’Oréal is to acquire skin, hair and bodycare brand Aesop from Brazil’s Natura &Co. The proposed transaction values Aesop at an enterprise value of $2.525bn.
Aesop, which was created in 1987, reported sales of $537m in 2022.
The brand operates around 400 doors across the Americas, Europe, Australia, New Zealand and Asia – the brand opened its first store in China in 2022.
“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,” commented L’Oréal CEO Nicolas Hieronimus.
L’Oréal Luxe President Cyril Chapuy added: “We have great confidence that Aesop will join the L’Oréal Luxe billionaire brands club and therefore contribute significantly to the growth of the division in the years to come.”
In October last year, Natura &Co said it was was considering either publicly listing the brand or divesting it. It was thought that LVMH and Shiseido were also interested in acquiring the brand.
“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,“ commented Fábio Barbosa, CEO of Natura &Co. He added: “We will also be able to concentrate on continuing to improve The Body Shop’s business and refocusing Avon International’s footprint.”