L’Oréal buys Australian luxury cosmetics brand Aesop, valued at $2.5 billion

The Aesop brand achieved sales of $537 million in 2022, according to a statement, and is so far owned by Brazilian group Natura &Co (The Body Shop, Avon). “Aēsop is taking advantage of all ‘carrying’ consumer trends and L’Oréal will help accelerate its enormous growth potential”, particularly in China, says L’Oréal Managing Director Nicolas Hieronimus.

“We are convinced that Aēsop will join the club of billionaire brands in the Division, thus contributing significantly to the growth of L’Oréal Luxe in the years to come”, adds Cyril Chapuy, President of L’Oréal Luxe also quoted in the press release and who “is delighted to welcome Michael O’Keeffe, Managing Director of Aēsop, and his teams”.

The L’Oréal Luxe category (Lancôme, Yves Saint Laurent, Giorgio Armani, etc.) occupied first place for the second consecutive year in 2022 within the group’s various divisions with 14.6 billion euros in sales (+18 .6%).

Fábio Barbosa, Managing Director of Natura &Co, explains in the press release that “the sale of Aēsop marks the start of a new cycle of development for Natura &Co”. “With a strengthened financial structure, a healthy balance sheet, and strict financial discipline, Natura &Co will be able to focus more on its strategic priorities, in particular on its investment plan in Latin America”, he said. The group wants to “continue to focus on strengthening The Body Shop and refocusing the footprint of Avon International”.

Founded in 1987, Aesop is known for its skin, hair and body products. Identified with its “iconic amber packaging, sustainable vegan formulas, natural ingredients, and personalized customer service, Aēsop has become a global brand available in high-end boutiques, beauty centers and luxury hotels around the world”, according to the press release.

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Aesop is distributed through approximately 400 exclusive outlets in America, Europe, Australia, New Zealand and Asia, with a budding presence in China where the first store opened in 2022.

L’Oréal, the world’s number one cosmetics company, achieved a 24.1% increase in net profit in 2022 to 5.7 billion euros and an 18.5% increase in sales to 38.3 billion. euros.

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