LVMH, L’Oréal Eye Stake in Aesop — Retail Bum

LVMH, L’Oréal, and Shiseido are some of the top contenders that are vying to buy a stake in Aesop, a deal that may value the brand at $2 billion or more.

The interest comes nearly three months after Brazilian cosmetics giant Natura & Co. announced plans to either go public or spin off its Aesop business to fund its expansion efforts. However, the company is now leaning toward selling stake due to challenging market conditions.

“The IPO has been assessed over the last months as an alternative to fund the accelerated growth of Aesop, and Natura & Co.’s management has been taking the necessary steps to pursue such [an] alternative,” Natura said in an October 17 statement.

The move is part of CEO Fabio Barbosa’s effort to overhaul Natura & Co.’s business, which has seen its stock value plummet by more than 73% since January 2020. In its last quarterly results, the company reported wider-than-expected losses with a tight labor market and inflation shaving off its profit margins.

Aesop was founded by the Melbourne-based hairdresser Dennis Paphitis in 1987, who today continues to serve as an advisor to the company. Natura & Co. has majority-owned the brand for more than a decade.

Originally published at https://retailbum.com on January 30, 2023.