L'Oréal acquires Aesop for $2.5 billion

In a deal signed this week, French group L'Oréal has acquired luxury personal care brand Aesop in a deal that reportedly valued the brand at $2.5 billion. 

Aesop was founded in 1987 in Melbourne, Australia, and has become popular in Europe and America due to the brand's focus on the ingredients in its products, which are plant-based and created with vegan and sustainable formulas, as well as its marketing operations, heavily focussed on minimal, elegant and a world-renowned packaging. «Aesop holds a unique position in the global luxury beauty market thanks to the brand's design-led essence,» explained Cyril Chapuy, president of L'Oréal Luxe, «from its highly effective and sensorial products and its customer-obsessed retail philosophy.»  Aesop's first flagship shop opened in China in 2022, and currently has around 400 stores around the world. In a statement from Natura & Co., the owner company, the purchase will be completed in cash, during the end of the third quarter of 2023. 

«Aesop fits into all of today's rising currents and L'Oréal will help unlock its huge growth potential, particularly in China and travel retail,» said L'Oréal CEO Nicolas Hieronimus. Following the transaction, Aesop will become part of the French company's luxury division, joining a list of international brands that have been part of L'Oréal's beauty team for years, such as Lancôme, Yves Saint Laurent, Giorgio Armani and Mugler.