L’Oreal, the French cosmetics conglomerate, has revealed the acquisition of Australian beauty brand Aesop by Natura & Co, a Brazilian cosmetics company, for a staggering $2.5 billion. The transaction is part of L’Oreal’s continuing growth strategy, which aims to strengthen the company’s position in the luxury cosmetics market. Aesop, which was founded in Melbourne in 1987, has earned a reputation as a premium skincare brand, providing a variety of high-end products for the face, hair, and body.
With an emphasis on natural ingredients and sustainable packaging, the brand has amassed a devoted following and now operates in over 25 countries around the globe. Aesop’s acquisition expands L’Oreal’s portfolio of luxury skincare labels, which already includes Lancome, Biotherm, and Kiehl’s. L’Oreal CEO Nicolas Hieronimus called the acquisition of Aesop a “fantastic opportunity” for the company to strengthen its position in the high-end skincare market.
Aesop will continue to operate as an independent brand within L’Oreal’s Luxury Division following the acquisition, with its existing management team staying in place. The sale of Aesop will enable Natura & Co to concentrate on its other beauty brands, such as Avon and The Body Shop. Natura & Co purchased Aesop in 2013 for approximately $71 million, and the brand has since grown significantly, with sales of roughly $260 million in 2021.
L’Oreal’s acquisition of Aesop is the newest in a succession of strategic moves to broaden its luxury portfolio. The business purchased the skincare brand Thayers Natural Remedies in 2020, and the Japanese beauty company Takami Co. in 2019. The global luxury skincare market is valued at $50 billion, with significant growth anticipated in the coming years.
L’Oreal’s acquisition of Aesop positions the company as a significant player in this industry, as it continues to expand its presence in the high-end beauty sector.
