In a deal worth $2.53 billion (£2 billion), the French beauty giant L’Oreal agreed to acquire the Australian skincare brand Aesop. This is the largest acquisition the company has made in decades. The move is expected to boost L’Oreal’s presence in the luxury skincare market and broaden the company’s product line.
Aesop, which was established in Melbourne 36 years ago, has developed a cult following throughout the world for its high-end products like soaps, lotions, and creams.
The brand is well-known for its minimalist packaging, use of high-quality ingredients, and distinctive retail settings that provide customers with a personalised shopping experience. Nearly 400 stores carry the brand, with flagship locations in Tokyo, Paris, and New York.
Nicolas Hieronimus, the chief executive officer of L’Oreal, stated that the acquisition of Aesop is in line with the company’s strategy to expand its premium skincare offerings and described the brand as a “superb combination of urbanity, hedonism, and undeniable luxury.”
The agreement will allow L’Oreal to capitalize on Aesop’s strong brand identification and devoted client base in order to further solidify its position as the industry leader for premium skincare.
The acquisition will enable L’Oreal to increase its presence in China, where the skin care brand opened its first store in 2022, in addition to expanding its product line. Hieronimus emphasized the dedication of L’Oreal to assisting Aesop in realizing its full potential, particularly in China and travel retail.
The arrangement is dependent upon administrative endorsements and is set to shut in the second from last quarter of 2023. L’Oreal’s largest takeover in decades, the acquisition of Aesop, demonstrates the company’s ongoing commitment to expanding its presence in the global beauty industry.
L’Oreal’s acquisition of Aesop allows the company to take advantage of this trend and further establish its position as a dominant player in the luxury skincare sector as consumer demand for high-end skincare products increases.
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Brazilian cosmetics company Natura & Co announced the sale of its full ownership of Australian skincare brand Aesop to French beauty giant L’Oreal for $2.53bn (£2bn). Natura first bought a majority stake in Aesop in 2012 and then acquired full ownership four years later.
During Natura’s decade-long ownership of the brand, Aesop’s gross sales increased from $28m to $537m. The acquisition proved to be a lucrative investment for Natura, with Aesop becoming its highest revenue earner over the period.
Founded in 1987 by Melbourne hairdresser Dennis Paphitis, Aesop is known for its minimalist packaging, use of high-quality ingredients, and unique retail spaces. The brand has almost 400 stores globally, including in major cities such as New York, Paris, and Tokyo.
Natura CEO Fábio Barbosa stated that the company would now focus on improving its other businesses, such as UK High Street chain The Body Shop, which it acquired from L’Oreal in 2017.
“We are confident that Aesop’s growth story will continue under the ownership of L’Oreal, and we wish Aesop continued success in this new chapter,” Barbosa added.
L’Oreal’s acquisition of Aesop represents a strategic move for the French beauty giant to expand its presence in the luxury skincare market and capitalize on the growing demand for premium skincare products.
The sale of Aesop from Natura to L’Oreal marks the end of a successful decade-long ownership period for the Brazilian cosmetics company and highlights the continued growth potential of the luxury skincare market.
As L’Oreal seeks to further establish itself as a leader in the industry, the acquisition of Aesop positions the company for continued success in the years to come.
Aesop is a luxury skincare brand founded in 1987 by Melbourne hairdresser Dennis Paphitis. Known for its minimalist packaging, high-quality ingredients, and unique retail spaces, Aesop has gained a cult following around the world.
The brand offers a range of products such as soaps, lotions, and creams that are formulated with plant-based ingredients and essential oils. Its products are designed to be effective and gentle on the skin, with a focus on hydration, nourishment, and anti-aging benefits.
Its commitment to using natural and sustainable ingredients has earned the brand a reputation for ethical and environmentally responsible practices. The brand sources ingredients from around the world and partners with local suppliers to support communities and promote fair trade practices.
Other than its focus on product quality, it is also known for its unique retail spaces. The brand’s stores feature distinctive interior designs that reflect the local culture and history of each location.
From a converted grain silo in Cape Town to a 19th-century heritage building in Paris, Aesop’s retail spaces are designed to create a personalized and immersive customer experience.
Its success has attracted attention from major players in the beauty industry. In 2012, Brazilian cosmetics company Natura & Co purchased a majority stake in the brand before acquiring full ownership four years later.
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One of the Largest Takeover
Recently, French beauty giant L’Oreal announced its acquisition of Aesop in a deal worth $2.53bn (£2bn), marking L’Oreal’s largest takeover in decades.
Despite changing ownership, its commitment to quality and sustainability remains at the forefront of its brand identity. The acquisition by L’Oreal is expected to further expand Aesop’s global reach and enhance the brand’s position as a leader in the luxury skincare market.
Its success can be attributed to its unique approach to product development, retail experience, and commitment to ethical and sustainable practices. As consumer demand for natural and sustainable beauty products continues to grow, Aesop’s emphasis on these values positions the brand for continued success in the years to come.