In it’s biggest brand acquisition yet — according to Dealogic data, French luxury giant L’Oréal acquires Australian brand Aesop in a whooping $2.5 billion deal.
After selling The Body Shop to Natura & Co in 2017, L’Oréal is now taking Aesop’s reigns from the same Brazilian parent company. With an expansive portfolio of brands ranging from Maybelline to Lancôme, L’Oréal continues to place its bets behind beauty enterprises that promise growth.
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Launched in Melbourne, Australia in 1987 — Natura & Co claimed 65% stake in Aesop in 2012 and then went on to buy it in 2016. Ever since, Aesop’s profits have vertically raced — ranging from $28 million in 2012 to $537 million in 2022.
In an official statement, L’Oreal CEO Nicolas Hieronimus said, “Given L’Oreal’s strong track record of creating value from recent acquisitions, we expect this transaction to be helpful to sentiment, despite its limited size relative to L’Oreal.”
Speaking from Natura’s perspective of this deal, CEO Fabio Barbosa talked about reducing debt and strengthening the company’s foothold in a different direction through this move. “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.”
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With a reputation to scale up newly onboarded brand’s magnitude globally — L’Oréal is expected to apply a similar strategy for Aesop’s expansion in the future.
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