Lede

French beauty giant L'Oreal has acquired Australian brand Aesop in a $2.5 billion deal, making it their biggest acquisition to date.

Summary

• L'Oreal has purchased Australian luxury skin and body care brand Aesop in a $2.5 billion deal, marking the biggest acquisition made by the French beauty company to date.

• The sale was announced by Brazilian firm Natura & Co, the parent company of Aesop, which also owns Avon and The Body Shop.

• Natura & Co sees the divestment of Aesop as a way to reduce debt and focus on other growth opportunities, given its status as Brazil's largest beauty and cosmetics company.

• Aesop was founded in Melbourne, Australia in 1987, and Natura acquired it formally in 2016, after picking up a 65% stake in the company in 2012.

• The brand's sales have surged nearly 20 times, from $28 million in 2012 to $537 million in 2022, according to Natura.

• The deal is expected to close in Q3 2023, and will allow L'Oreal to tap into Aesop's growth potential, particularly in mainland China and travel retail.