L’Oréal is buying Australian luxury cosmetics brand Aesop for $2.5 billion, its biggest acquisition deal to date.
L’Oréal’s biggest acquisition until Aesop was its $1.7 billion purchase of YSL Beauté, which took place in 2008. The acquisition will put Aesop under the same ownership as Maybelline and Garnier, also owned by the French beauty brand giant.
Until now, Aesop was owned by the Brazilian company Natura & Co, which bought a stake in the company in 2012 and then officially acquired it in 2016. Aesop’s success greatly increased under Natura & Co, skyrocketing the organic skincare brand to fame. Its sales went from $26 million in 2012 to a whopping $537 million in 2022.
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“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,” explained Fabio Barbosa, CEO of Natura & Co when announcing the acquisition.
Founded in Melbourne in 1987, Aesop has grown to become synonymous with organic cosmetics, minimalist design packaging and lifestyle influencers. Its products are currently available in 29 markets with goals of expanding following the acquisition by L’Oréal.
“L’Oréal will contribute to unleashing its massive growth potential, notably in China and travel retail,” said Nicolas Hieronimus, CEO of L’Oréal in a statement.
The acquisition is expected to close in the third quarter of this year.
