Aesop On Track For $2.8 Billion Valuation With LVMH & L’Oréal Queuing Up For A Stake

Aesop could be on track for a US$2 billion (AU$2.8 billion) valuation as several luxury conglomerates including LVMH, L’Oréal and the Japanese beauty group Shiseido Co are understood to be considering offers for a stake in the Australian-founded cosmetics brand.

According to Bloomberg, the Brazilian cosmetics film Natura & Co. is working with Morgan Stanley and Bank of America Corp. to sell a partial stake in Aesop, which resulted in a 13% jump in the share price of the São Paulo-headquartered group that increased its market value to 20.1 billion reais (AU$5.6 billion). Natura & Co. purchased a 65% stake in Aesop in 2012 for a comparatively paltry US$68 million, which has proven to be an extremely good investment just a decade later.

It’s understood Natura & Co. was initially exploring the possibility of an IPO for the brand, but market conditions in 2022 saw recently anointed CEO Fabio Barbosa shift strategy to consider the sale of a stake in the cosmetics brand. Representatives for Natura, LVMH, L’Oréal and Shiseido were contacted for comment but declined, with the Aesop deal still undergoing deliberations that include confirming a valuation for the company.

Sold across a network of 320 stores in 25 countries, Aesop was started in 1987 by Melbourne hairdresser Dennis Paphitis.