L’Oréal Group will purchase the Aēsop beauty brand from Natura &Co, parent company of Avon and The Body Shop, in a transaction that values Aēsop at $2.52 billion. Aēsop operates approximately 400 points of sale across the Americas, Europe, Australia, New Zealand and Asia, with a recent advance into China, where the brand opened its first store in 2022.
“Aēsop holds a very unique positioning in the global luxury beauty market thanks to its design-led brand essence, its highly efficacious and sensorial products as well as its customer-obsessed retail philosophy,” said Cyril Chapuy, President of L’Oréal Luxe in a statement. “We look forward to welcoming Aesop’s CEO Michael O’Keeffe and his experienced and passionate teams to continue to grow together the brand’s remarkable potential.”
As recently as last week, Natura &Co had been considering a sale of The Body Shop, according to CNBC, but the company has apparently decided to hold on to that brand. Fábio Barbosa, CEO of Natura &Co, noted in a statement that the divestment of Aēsop marked a “new development cycle” for the company, adding, “With a strengthened financial structure and a deleveraged balance sheet, Natura &Co, exercising strict financial discipline, will be able to sharpen its focus on its strategic priorities, notably our investment plan in Latin America. We will also be able to concentrate on continuing to improve The Body Shop’s business and refocusing Avon International’s footprint.”
The closing is subject to regulatory approvals and other customary conditions.