L'Oréal Groupe → Aesop (Aésop)
completedL'Oréal signed a binding agreement to acquire Melbourne-founded luxury skincare and personal-care brand Aesop from Brazil's Natura & Co for an enterprise value of approximately US$2.525 billion (reported as roughly A$3.7 billion), in an all-cash deal. It was L'Oréal's largest-ever acquisition. The transaction closed on August 30, 2023, after all regulatory approvals were obtained.
L'Oréal wanted to add a genuinely premium, culty, high-margin "masstige"/luxury skincare brand with strong direct-to-consumer retail, global store footprint and cachet among younger, design-conscious consumers, complementing L'Oréal's existing luxury division and giving it a growth platform in the fast-growing prestige beauty and personal-care segment, particularly in Asia and North America.
Natura & Co was carrying significant debt after its earlier acquisitions (including Avon) and sought to deleverage its balance sheet and refocus on core priorities — its Natura and Avon brands and Latin American integration. Selling Aesop, a non-core but highly valuable asset, at a strong price let Natura & Co strengthen its financial position; Natura had reportedly fielded competing interest, including from LVMH, before selecting L'Oréal.
Not applicable for Aesop (privately held, wholly owned subsidiary of Natura & Co). Natura &Co Holding trades on the B3 (Brazil) and its ADRs on the NYSE; L'Oréal trades on Euronext Paris — detailed same-day share price moves for the parent listed entities were not consistently reported in available sources.
Widely described as the biggest brand acquisition in L'Oréal's history and the largest-ever deal for an Australian-founded luxury brand. Coverage emphasized Aesop's rare status as a profitable, design-led "indie" brand that had scaled globally while retaining premium positioning, and framed the sale as validating Natura & Co's deleveraging strategy.
Deal mechanics
Not disclosed in available sources
Morgan Stanley (lead financial advisor) and Bank of America (financial advisor) to Natura & Co; Davis Polk & Wardwell (lead legal advisor) to Natura & Co
All-cash acquisition of 100% of Aesop; enterprise value of US$2.525 billion, paid in cash at closing.
Completed August 30, 2023 following receipt of all required regulatory approvals (specific jurisdictions/regulators not detailed in available sources; deal proceeded without reported antitrust obstacles).
Not disclosed in available sources