Beauty
In its biggest brand acquisition yet, French luxury giant L’Oréal is acquiring Australian brand Aesop in a $2.5 billion deal, according to Dealogic.
After selling The Body Shop to Natura & Co in 2017, L’Oréal is now taking over Aesop from the same Brazilian parent company. With a broad portfolio of brands ranging from Maybelline to Lancôme, L’Oréal continues to place its bets behind beauty ventures that promise growth.
Launched in Melbourne, Australia in 1987. Natura & Co claimed a 65% stake in Aesop in 2012, then bought it in 2016. Since then, Aesop’s profits have grown vertically, ranging from $28 million in 2012 to $537 million in 2022.
In an official statement, the CEO of L’Oreal, Nicholas Hieronymus, said: “Given L’Oreal’s strong track record of creating value from recent acquisitions, we expect this deal to be beneficial to sentiment despite its limited size relative to L’Oreal.”
Speaking from Natura’s perspective on this deal, CEO Fabio Barbosa talked about reducing debt and strengthening the company’s position in a different direction with this move. “With a strengthened financial structure and a harmonized balance sheet, Natura & Co, applying strict financial discipline, will be able to focus on its strategic priorities, especially our investment program in Latin America.”
With a reputation for expanding the magnitude of a new built-in brand globally, L’Oréal is expected to employ a similar strategy to expand Aesop in the future.
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