L’Oréal acquires Aēsop
L’Oréal signed an agreement with Natura &Co. to acquire the luxury Australian beauty brand Aēsop.
The current proposed transaction values the beauty brand at an enterprise of $2.525 billion.
“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,” said Nicolas Hieronimus, chief executive officer at L’Oréal Groupe. “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.”
[Read more: Mass Appeal: How marketers are winning the skin care game]
Created in 1987, Aēsop is best known for its skin, hair and body care products, which come in amber packaging and contains plant-based ingredients and sustainable vegan formulations.
“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,” said Cyril Chapuy, president of L’Oréal Luxe. “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 Aēsop will join the L’Oréal Luxe Billionaire brands club and therefore contribute significantly to the growth of the Division in the years to come.”
Currently, Aēsop operates around 400 points of sale across the Americas, Europe, Australia, New Zealand and Asia.
[Read more: L’Oréal educates consumers on product environmental impact with labeling system]
“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,” said Fábio Barbosa, chief executive officer of Natura &Co. “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.”