L’oréal will acquire aspirational luxury brand Aesop from Natura &Co for an enterprise value of US$$2.525 billion, subject to customary regulatory approvals and is expected to close in the third quarter of 2023.
Natura &Co is a global, purpose-driven, multi-channel and multi-brand cosmetics group which includes Avon, Natura, The Body Shop and Aesop.
With this transaction, Natura &Co will strengthen and deleverage it balance sheet, freeing up resources to focus on its strategic priorities, notably the integration in Latin America, as well as the further optimisation of Avon International’s footprint and the improvement of The Body Shop’s business.
“The divestment of Aesop 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 Aesop brand, and we are extremely grateful to all Aesop’s associates, who contributed immensely not only to Aesop’s success, but also to making Natura &Co what it is today. We are confident that Aesop’s growth story will continue under the ownership of L’Oréal and wish Aesop continued success in this new chapter.”Fabio Barbosa, Chief Executive Officer of Natura &Co
Aesop became part of Natura &Co in 2012. Since then, gross sales increased from US$28 million to US$537 million between 2012 and 2022. The number of stores and counters increased from 52 to 395 as Aesop expanded its geographic footprint from eight markets to 29. In 2022, Aesop opened its first physical stores in Mainland China and significantly grew its fragrance category.
“This is an exciting day for Aesop. With the support of Natura &Co, over the past decade, we have built Aesop 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.”Michael O’Keefe, CEO of Aesop