Brazilian company Natura &Co sold its Australian brand Aesop to L’Oreal in a deal valued at $2.53 billion—L’Oreal’s largest acquisition to date.
Aesop’s reported revenue last year was $537 million, a huge leap from $28 million in 2012, when Natura acquired a 65% stake in the company. Since Natura formally bought the company in 2016, Aesop’s growth momentum has outperformed Natura’s other direct selling brands Avon and The Body Shop, and continues to show increased growth potential in international markets. Aesop’s new retail stores in China have become top revenue generators.
“Aesop taps into all of today’s ascending currents and L’Oreal will contribute to unleash its massive growth potential, notably in China and Travel retail,” said L’Oréal CEO Nicolas Hieronimus in a statement.
This sale is part of a larger strategy by Natura CEO Fabio Barbosa to simplify the company’s structure and cut costs. It is also expected to help reduce the company’s debts and aid in turning around its other businesses.
“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,” Barbosa said.
The acquisition is expected to finalize in the third quarter of this year.
