L’Oréal Acquires Aesop for $2.5B — Retail Bum

L’Oréal has agreed to acquire Aesop from Brazilian firm Natura & Co. in a deal valued at $2.5 billion.

The deal marks the most significant acquisition the beauty giant has ever made to date, followed by its purchase of YSL Beauté for $1.7 billion in 2008.

Natura & Co., Brazil’s largest beauty and cosmetics company that also owns brands such as The Body Shop and Avon, expects Aesop’s divestment to help it reduce its debt and chart its path to future growth.

“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,” said CEO Fabio Barbosa.

The beauty giant bought a 65% stake in Aesop in 2012 and acquired the brand in 2016. Since its acquisition, Aesop’s sales have increased by nearly 20 times, going up from $28 million in 2012 to $537 million last year. And just over the past year, the brand has recorded double-digit revenue growth, according to CNN.

Aesop was founded in 1987 in Melbourne, Australia. The brand’s products are currently sold in 29 markets, including Mainland China, where it is hoping to grow its business further.

“Aesop taps into all of today’s ascending currents,” said L’Oréal CEO Nicolas Hieronimus. “L’Oréal will contribute to unleash its massive growth potential, notably in China and travel retail.”

Originally published at https://retailbum.com on April 5, 2023.