Australia’s “Aesop” is acquired by L’Oreal in a $2.5 billion deal
The largest acquisition by the French cosmetics giant in decades, L’Oreal has agreed to purchase Australian skincare company Aesop for $2.53 billion (£2 billion).
According to Nicolas Hieronimus, chief executive of L’Oreal, “the brand is a superb combination of urbanity, sensuality, and unquestionable elegance.”
Since its establishment 36 years ago, Aesop has gained a cult following for its goods, which include soaps, lotions, and creams. Over “400 Aesop stores” exist worldwide.
The transaction, which needs regulatory approvals, is anticipated to be finalised in the 3rd quarter of this year.
According to Mr. Hieronimus, L’Oreal will aid Aesop in growing in China, where it launched its first shop in 2022.
“Aesop taps into all of today’s increasing flows, and L’Oreal will help unleash its enormous potential, especially in China and travel retail,” he continued.
In 2012, the Brazilian cosmetics business Natura & Co. purchased the bulk of Aesop’s stock before acquiring full ownership of the company four years later.
For the 2012–2022 decade, it grew to be Natura’s top revenue generator. Gross sales for Aesop increased during this time from $28 million to $537 million.
Hairdresser Dennis Paphitis established Aesop in 1987 when he began incorporating essential oils into products at his Melbourne, Australia, salon. He created samples for clients as demand increased. Aesop, a well-known Greek fabulist and storyteller, is how Mr. Paphitis ultimately decided to name his company.
Fábio Barbosa, the CEO of Natura, declared that the company would now concentrate on enhancing its other companies, such as UK high street retailer The Body Shop, which it acquired from L’Oreal in 2017.
In a new chapter, Mr. Barbosa concluded, “We are optimistic that Aesop’s growth narrative will keep going under the control of L’Oreal and wish Aesop ongoing success.”