L'Oreal agrees to buy Aesop in $2.5 billion deal

L'Oreal on Monday said it had signed an agreement with Natura & Co to acquire Australian premium beauty-products maker Aesop in a $2.525 billion deal. L'Oreal executives said the move to buy Aesop -- which makes plant-based hair and body-care products -- would help the iconic beauty brand expand its global luxury offerings. L'Oreal Chief Executive Nicolas Hieronimus said in a statement that Aesop was "the epitome of avant-garde beauty," offering a "superb combination of urbanity, hedonism and undeniable luxury." He added: "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 had $537 million in sales last year, L'Oreal said in that statement. Natura Chief Executive Fabio Barbosa said that the decision to offload Aesop "marks a new development cycle" for the Brazilian cosmetics maker that would help it narrow its focus on Latin America. The closing of the deal is subject to regulatory approval.

-Bill Peters

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04-03-23 1832ET

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