Skincare Brand Aesop Bought by L’Oréal for Over $2 Billion
| LAST UPDATE 04/11/2023
In a deal that has shaken up the skincare industry, L’Oréal has agreed to purchase the skincare brand, Aesop. Here’s everything to know about this jaw-dropping acquisition.
For those unfamiliar with Aesop, it is an Australian luxury skincare brand that has developed a cult following since it was founded in 1987. They focus on creating products made with the finest ingredients, and only use ingredients that are plant-based or made in a laboratory - nothing from animals. Over the years, their black bottles with white labels have become a design staple and almost as famous as the brand itself. The brand was founded by Melbourne-based hairdresser Dennis Paphitis when he began blending essential oils into products at his hair salon. Eventually, demand grew so big it evolved into a brand, and now there are 400 stores worldwide.
It only makes sense that the French cosmetics giant, L’Oréal, would also want a piece of the Australian luxury skincare brand. Nicolas Hieronimus, the chief executive of L’Oréal, said in a statement, “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.” It’s not a cheap price tag, either. The agreed purchase point is 2.5 billion dollars. It would become L’Oréal’s largest acquisition of another brand. Second in line is their 2008 acquisition of YSL Beauté for $1.7 billion, according to CNN. This isn’t the first major sale that Aesop has gone through. In 2016, Brazilian company Natura & Co acquired Aesop in 2016. Since then, their sales have been insane. Per CNN, they went from $28 million in 2012 to $537 million in 2022. Now Natura & Co is passing on the crown to the French cosmetics giant, and if the past decade were any indicator of what to look out for from this brand – we're expecting big moves.
The deal is expected to close in the second half of the year, per The New York Times. Now Aesop will join the L’Oréal cosmetics family in what is one of the biggest deals in beauty history. Stay tuned for more updates.