// Natura &Co sells Aesop to French cosmetics giant L’Oreal for £2 billion
// Natura &Co said the deal will strengthen its finances and free up resources
The Body Shop owner Natura &Co has sold Aesop to French cosmetics giant L’Oreal for £2 billion as it “focuses on strategic priorities”.
Natura &Co said the deal will strengthen its finances and free up resources to focus on its strategic priorities, such as the integration in Latin America and the improvement of The Body Shop’s business.
The transaction is still subject to customary regulatory approvals and is expected to close in Q3 2023.
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Since becoming part of Natura &Co in 2012, Aesop has seen the number of stores and counters increase from 52 to 395.
Natura &Co CEO, Fabio Barbosa said: “The divestment of Aesop marks a new development cycle for Natura &Co. 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. We are proud of the remarkable success of the Aesop brand, and we are extremely grateful to all Aesop’s associates, who contributed immensely not only to Aesop’s success, but also to making Natura &Co what it is today.”
L’Oréal CEO, Nicolas Hieronimus said: “Aesop is the epitome of avant-garde beauty, whose products are not only made with great care and exceptional attention to detail; they are a superb combination of urbanity, hedonism and undeniable luxury. 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.”
Aesop CEO, Michael O’Keefe said: “This is an exciting day for Aesop. With the support of Natura &Co, over the past decade, we have built Aesop into an admirable global force in the luxury beauty space, with a powerful product proposition and a unique customer and retail experience.
“We now enter the next phase of our development and I’m confident that with L’Oréal’s partnership we will be able to bring our exceptional skincare products to even more people and continue to expand our brand globally.”
