Business

L’Oréal acquires Aēsop for $2.5 billion

By Eva Morletto04 avril 2023

The announcement came on Tuesday morning: L'Oréal signed an agreement with Brazilian group Natura & Co to buy the Australian cosmetics house Aēsop.

In 2022, the Aēsop brand generated $537 million in sales (Shutterstock)

The $2.5 billion buyout for the Aēsop brand is substantial. But it was very soon justified by the comments of Cyril Chapuy, president of L'Oréal Luxe, in the press release following the transaction: " We have great confidence that Aēsop will join the L’Oréal Luxe Billionaire brands club and therefore contribute significantly to the growth of the Division in the years to come."

For several years now, Aēsop has been on a roll: the brand founded in 1987 by hairstylist Dennis Paphitis and famous for its hair and body products achieved a turnover of $537 million in 2022. In its statement, L'Oréal highlighted the strengths of the brand, now distributed in about 400 stores around the world, in Europe, America, and Oceania, and even in China, where Aēsop has opened its first outlet. "Aēsop taps into all of today’s ascending currents and L’Oréal will contribute to unleash its massive growth potential, notably in China and Travel retail," announced L'Oréal CEO Nicolas Hieronimus.

The brand understood the needs of the time: very personalized customer service, easily recognizable packaging with amber bottles, vegan and cruelty-free components, and natural ingredients. In addition to its distribution network, the company has also entered into strategic partnerships with hotel brands, including iconic establishments such as the Park Hyatt in Tokyo and the Boundary Hotel in London.

While Aēsop has been doing very well, L'Oréal is also experiencing a very positive financial period, thanks to its premium lines: the L'Oréal Luxe category, which includes brands such as Lancôme or Yves Saint Laurent, stayed at the top of the group's divisional rankings for two years in a row, in 2021 and 2022, thanks to sales of €14.6 billion last year, which corresponds to an optimistic leap of +18.6%.

Cyril Chapuy, president of L'Oréal Luxe, proudly announced the arrival of the Australian house "We look forward to welcoming Aēsop’s CEO Michael O’Keeffe and his experienced and passionate teams to continue to grow together the brand’s remarkable potential, by carrying on cultivating its uniqueness and its values."

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