L’Oréal has struck an agreement to buy Natura &Co’s upscale Australian cosmetics brand Aēsop for an enterprise value of US$2.525 billion, ending the Brazilian company’s ten-year ownership of the brand.
Natura &Co Chief Executive Officer Fábio Barbosa said: “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. 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.”
Created in 1987, Aēsop is widely popular for its skin, hair and body products. With its signature amber packaging, plant-based ingredients, sustainable vegan formulations, and its bespoke customer service, it has evolved into a global brand available across luxury retail, beauty, and hospitality locations around the world.
Since Natura &Co took over the wellness brand in 2012, it has seen notable growth. Between 2012 and 2022, gross sales rose from US$28 million to US$537 million (up +21% in constant currency from the previous year). During that ten-year period, the number of stores and counters also increased, from 52 to 395 as Aēsop expanded its geographic footprint from eight markets to 29.
It currently operates around 400 points of sale across the Americas, Europe, Australia, New Zealand and Asia, with a growing presence in Mainland China where it unveiled its first store in 2022. Aēsop’s fragrance business has also been growing strongly.
The purchase of Aēsop adds to L’Oréal’s already powerful luxury cosmetics portfolio.
As reported, L’Oréal Group recorded sales of €38.26 billion in 2022, an increase of +18.5% on a reported basis and +10.9% like-for-like.
L’Oréal Groupe Chief Executive Officer Nicolas Hieronimus said: “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. 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.”
L’Oréal Luxe President Cyril Chapuy added: “My team and I are thrilled to have Aēsop join the L’Oréal Luxe portfolio of iconic global brands. Aēsop holds a 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 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.”
Aēsop CEO Michael O’Keefe said: “This is an exciting day for Aēsop. With the support of Natura &Co, over the past decade, we have built Aēsop into an admirable global force in the luxury beauty space, with a powerful product proposition and a unique customer and retail experience.
“We now enter the next phase of our development and I’m confident that with L’Oréal’s partnership we will be able to bring our exceptional skincare products to even more people and continue to expand our brand globally. We thank Natura &Co for its support and are greatly looking forward to working with L’Oréal to continue our development, building on our distinctive brand and heritage.” ✈
