In important beauty news, L’Oréal has signed an agreement with Natura &Co to acquire Australian luxury beauty brand Aēsop, in a transaction valued at USD $2.525 billion (AUD $3.72 billion).

The Australian brand was created in 1987 and is renowned for its skin, hair and body products with signature amber packaging, plant-based ingredients, sustainable vegan formulations and tailored customer service. The globally significant brand is available across luxury retail, beauty, and hospitality locations worldwide, with 400 points of sale throughout the Americas, Europe, Australia, New Zealand, and Asia. Speaking to its significance, the brand posted sales of USD $537 million (AUD $791 million) in 2022.

“I am very excited to welcome Aēsop and its teams to the L’Oréal Groupe family,” said Nicolas Hieronimus, Chief Executive Officer, L’Oréal Groupe. “Aēsop is the epitome of Avant Garde beauty, whose products are not only made with great care and exceptional attention to detail, but are also 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.”

“My team and I are thrilled to have Aēsop join The L’Oréal Luxe portfolio of iconic global brands,” added Cyril Chapuy, President of L’Oréal Luxe. “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.”

This deal ushers in a new era of growth and development across international beauty for Aēsop under L’Oréal’s inimitable umbrella, and for the future of Natura &Co with this renewed business structure.

“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,” said Fábio Barbosa, Chief Executive Officer of Natura &Co.

“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.”

For more information visit www.aesop.com

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