L’Oréal completes Aesop acquisition, its most expensive to date

On the evening of August 30, the L’Oréal group announced it has finalised the acquisition of Australian premium cosmetics brand Aesop from Brazilian group Natura & Co., at the terms agreed upon on April 3, 2023. The operation, which values Aesop at just over $2.5 billion (€2.3 billion), is the most expensive acquisition carried out by French beauty giant L’Oréal to this day.

Aesop was founded in Melbourne, Australia, in 1987. It currently operates approximately 400 retail outlets worldwide, including 280 stores and about 100 department store concessions. In 2022, Aesop generated a revenue of €537 million.

The brand has now officially joined L’Oréal’s luxury division, which notably includes Lancôme, Yves Saint Laurent and Kiehl’s.

“We are thrilled to have Aesop join the L’Oréal Luxe Division and I look forward to welcoming Michael O’Keeffe and his passionate teams to the L’Oréal family, as we work together to write the next chapter of this iconic brand. We have great confidence that in time, Aesop will join the L’Oréal ‘Billionaire Brands’ club,” said Cyril Chapuy, president of L’Oréal Luxe. 

In H1 2023, L’Oréal reported a revenue of €20.57 billion, a 12% increase. The Luxe division’s sales grew by 6.1% to €7.3 billion.

Natura & Co., besides ceding Aesop to L’Oréal, has indicated this week that it is mulling the possibility of selling one of its other brands, The Body Shop.