L'Oréal to Acquire Aesop

L'Oréal to Acquire Aesop L'Oréal announced it has signed an agreement with Natura&Co to acquire Australian luxury beauty brand Aēsop. The proposed transaction values Aēsop at USD 2.525 billion enterprise value. Founded in 1987, Aēsop is a firm recognized worldwide for its skin, hair and body care products. Through its amber packaging, plant-based ingredients, sustainable vegan formulations and bespoke customer service, Aēsop has become a global prestige brand present in luxury retail, beauty and hospitality locations across the world. Aēsop currently operates approximately 400 sales points across the Americas, Europe, Australia, New Zealand and Asia, establishing a new footprint in China where its first store opened in 2022. The brand reported USD 537 million in sales in 2022. Nicolas Hieronimus, Chairman of L'Oréal Groupe, stated, "I am delighted to welcome Aēsop and its teams to the L'Oréal Groupe family. Aēsop not only produces its products with great care and extraordinary attention to detail, but also embodies avant-garde beauty that is a perfect blend of urbanity, hedonism and undeniable luxury. Aēsop benefits from all of today's rising trends, and L'Oréal will help unlock the brand's tremendous growth potential, particularly in China and in travel retail." Commenting on the acquisition, Cyril Chapuy, President of L'Oréal Luxe, added: "My team and I are thrilled to see Aēsop join L'Oréal Luxe's portfolio of iconic global brands. Aēsop holds a very unique position in the global luxury beauty market, thanks to its brand essence in design leadership, highly efficacious and sensorial products, and customer-centric retail philosophy. We look forward to growing together the extraordinary potential of the brand while continuing to nurture its uniqueness and values, with Michael O'Keeffe, CEO of Aēsop, and his experienced and passionate teams. We have great confidence that Aēsop will join L'Oréal Luxe's Billionaire brands club and will therefore contribute significantly to the Division's growth in the coming years." Fábio Barbosa, Chairman of Natura &Co, stated: "The sale of Aēsop marks a new development cycle for Natura &Co. With strict financial discipline, Natura &Co, with its strengthened financial structure and unlevered balance sheet, will be able to focus on its strategic priorities, particularly on our investment plan in Latin America. We will also be able to continue developing The Body Shop business unit and begin to refocus on Avon International's footprint. We are proud of the remarkable success of the Aēsop brand and are deeply grateful to all Aēsop employees who have not only contributed to Aēsop's success, but also greatly to what Natura &Co is today. We are confident that Aēsop's growth story will continue under L'Oréal's ownership and wish Aēsop continued success in this new chapter."   The closing of the acquisition is subject to certain regulatory approvals and other customary conditions. Source