In February, Retail Beauty reported that LVMH, L’Oréal and Shiseido were eyeing up a stake in Aēsop.
Today, L’Oréal announced that it has signed an agreement with Natura & Co to acquire Aēsop in a deal that values the Australian luxury beauty brand at $3.7 billion (US$2.5 billion).
Aēsop was founded by hairdresser Dennis Paphitis in 1987 in Armadale, Melbourne, and soon became known for its signature amber packaging, plant-based ingredients and sustainable vegan formulations.
Just over 10 years ago, Natura & Co bought a 65 per cent stake in Aesop for US$71.6 million. At the time, the company had more than 60 stores in 11 countries and annual sales of US$67.4 million.
In 2016, Natura & Co acquired total ownership of Aesop, following its rapid growth to 177 stores in 20 countries and 80 locations in department stores worldwide.
Today, Aēsop currently operates around 400 points of sale across the Americas, Europe, Australia, New Zealand, and Asia, with a nascent footprint in China where the first store opened in 2022.
Natura & Co is a Brazilian global personal care cosmetics group headquartered in São Paulo which also own Natura Cosméticos, The Body Shop and Avon Products.
Nicolas Hieronimus, Chief Executive Officer, L’Oréal Groupe, said: “I am very excited to welcome Aēsop and its teams to the L’Oréal Groupe family. Aēsop is the epitome of avant-garde beauty, whose products are not only made with great care and exceptional attention to detail; they are a superb combination of urbanity, hedonism and undeniable luxury. Aēsop 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.”
Commenting on the acquisition, Cyril Chapuy, President of L’Oréal Luxe, added: “My team and I are thrilled to have Aēsop join the L’Oréal Luxe portfolio of iconic global brands. Aēsop holds a very unique positioning on the global luxury beauty market thanks to its design led brand essence, its highly efficacious and sensorial products as well as its customer-obsessed retail philosophy. We look forward to welcoming Aēsop’s CEO Michael O’Keeffe and his experienced and passionate teams to continue to grow together the brand’s remarkable potential, by carrying on cultivating its uniqueness and its values. We have great confidence that this strategic acquisition will join the L’Oréal Luxe Billionaire brands club and therefore contribute significantly to the growth of the Division in the years to come.”
Fábio Barbosa, Chief Executive Officer of Natura & Co said: “The divestment of Aēsop 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. We will also be able to concentrate on continuing to improve The Body Shop’s business and refocusing Avon International’s footprint. We are proud of the remarkable success of the Aēsop brand, and we are extremely grateful to all Aēsop’s associates, who contributed immensely not only to Aēsop’s success, but also to making Natura &Co what it is today. We are confident that Aēsop’s growth story will continue under the ownership of L’Oréal and wish Aēsop continued success in this new chapter.”
The closing of the deal is subject to certain regulatory approvals and other customary conditions.
Bahar Etminan, founder and editor of RESCU.com.au chats to 3AW Breakfast about the acquisition.
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