Natura &Co sells “avant-garde beauty” brand Aesop to L’Oréal for US$2.5B
04 Apr 2023 --- L’Oréal is acquiring Aesop, a subsidiary of the Brazilian firm Natura &Co for an enterprise value of US$2.53 billion. The transaction is subject to customary regulatory approvals and is expected to close in Q3 2023.
“I am very excited to welcome Aesop and its teams to the L’Oréal Groupe family. Aesop is the epitome of avant-garde beauty, whose products are not only made with great care and exceptional attention to detail; they are a superb combination of urbanity, hedonism and undeniable luxury,” says Nicolas Hieronimus, CEO at L’Oréal Groupe.
Natura &Co is strengthening setting strategic priorities such as the integration in Latin America and furthering its Avon and the Body Shop’s business.“Aesop taps into all of today’s ascending currents and L’Oréal will contribute to unleashing its massive growth potential, notably in China and in Travel retail.”
Aesop enters its next phase
Aesop has been part of Natura &Co since 2012 and its sales have grown nineteen-fold since. Between 2012 and 2022, gross sales increased from US$28 million to US$537 million. Moreover, retail stores increased from 52 to 395 as Aesop expanded globally from 8 to 29 markets.
“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,” expresses Michael O’Keefe, CEO at Aesop.
“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 look forward to working with L’Oréal to continue our development, building on our distinctive brand and heritage.”
Natura &Co highlights that in 2022, Aesop opened its first physical stores in Mainland China and grew its fragrance category.
Natura &Co resets priorities
On the other hand, Natura &Co is strengthening its balance sheet and setting strategic priorities such as the integration in Latin America and furthering its Avon and 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,” says Fabio Barbosa, CEO at Natura &Co.
“We will also be able to concentrate on continuing to improve The Body Shop’s business and refocusing Avon International’s footprint.”
In related news, L’Oréal issued its first venture capital investment in the metaverse and Web3 space, signaling the industry’s readiness to adapt to an evolving digital landscape. L’Oréal’s corporate venture capital fund BOLD made a minority investment in US-based start-up, Digital Village, a metaverse-as-a-service platform and NFT marketplace for brands, creators and communities.
Edited by Venya Patel
