It was only a couple of months ago that swirling rumours of the potential Aesop sale began to firm up, with likely front runners looking to buy the Australian-founded cosmetics brand including the likes of LVMH, L’Oréal and Japanese group Shiseido Co. Today, the buyer has been revealed as the French giant L’Oréal, becoming the new owner of Aesop after purchasing the brand for US$2.5 billion (AU$3.7 billion).
The acquisition of Aesop is the largest ever for L’Oréal, taking the reins from the Brazilian personal care company Natura & Co., which had originally bought its 65% stake in 2012 for just US$68 million. A little over a decade later that bet has netted an extremely strong return with Aesop sales jumping from US$28 million to US$537 million during the 11-year period, delivering ample funds to now focus on the expansion of its Avon and The Body Shop businesses.
“Aesop taps into all of today’s ascending currents and L’Oréal will contribute to unleash its massive growth potential, notably in China and Travel retail,” said the L’Oréal chief executive, Nicolas Hieronimus, in a statement.
Under its new ownership Aesop will continue its global expansion, with the promising Chinese market stated as a primary target for the brand back in 2021. When you consider that Aesop was started in 1987 by Melbourne hairdresser Dennis Paphitis, the incredible growth of the brand is one of Australia’s best home-grown success stories in recent decades. This latest L’Oréal buy of Aesop is expected to be finalised in Q3 this year.
