L’Oréal to Acquire Luxury Beauty Brand Aēsop for $2.5B
L’Oréal announced on Monday that it's buying the Australian luxury beauty brand Aēsop for $2.5 billion. The agreement is between L’Oréal and Aēsop's parent company, Natura &Co. Aēsop currently operates around 400 stores across the Americas, Europe, Australia, New Zealand and Asia, with a nascent footprint in China. Launched in 1987, Aēsop is known for its skin, hair and body products made with plant-based ingredients and sustainable vegan formulations. The deal is expected to close in the third quarter of this year.
Total Retail's Take: Retailers in the beauty category have been eyeing Aēsop as an acquisition target for several months. For example, Bloomberg reported in January that LVMH and Japanese beauty group Shiseido Co. were weighing offers for a stake in Aēsop. With Aēsop already having a brand presence in the China market, this acquisition better positions L’Oréal to expand its footprint, both digitally and physically, there. The New York Times reported this is L’Oréal's largest ever acquisition. Given that, one would expect big things from the combined brands.
Marie Albiges is the managing editor for Women in Retail, Total Retail, and Women Leading Travel & Hospitality. She is responsible for content development, management and production for the group. Marie is a former journalist, a travel aficionado, a French native and fitness enthusiast who lives in Philadelphia with her partner, stepdaughter and dog.
