L'Oréal’s Acquisition of Aēsop Received Approval from Brazilian Antitrust Regulator

L'Oréal’s acquisition of Aēsop from Natura &Co received approval from Brazilian antitrust regulator. The deal is expected to be finalized in Q3 2023.

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The Brazilian antitrust regulator, Cade, has given its approval for L'Oréal to acquire Aēsop with the approval considered final unless there is an appeal within 15 days.

In 4th Apr, L’Oréal announced that it has entered into an agreement with Natura & Co to acquire Australian luxury beauty brand Aēsop. The proposed acquisition values Aēsop at an enterprise value of $2.525 billion.

Aēsop has a presence in around 400 points of sale across various regions including the Americas, Europe, Australia, New Zealand, and Asia, with a new entry into China where the first store opened in 2022. In 2022, the brand recorded sales of $537 million.

Nicolas Hieronimus, Chief Executive Officer, of L’Oréal Groupe, said, “I am very excited to welcome Aēsop and its teams to the L’Oréal Groupe family. Aēsop taps into all of today’s ascending currents and L’Oréal will contribute to unleashing its massive growth potential, notably in China and Travel retail.”

Fábio Barbosa, Chief Executive Officer of Natura &Co, said: “The divestment of Aēsop 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.”

The acquisition is expected to be finalized in Q3 2023, and L'Oréal plans to increase the brand's presence in China and invest in its travel retail operations.

Natura & Co initially considered an IPO for Aēsop but opted for a stake sale due to volatile markets. The sale aimed to strengthen the balance sheet of the Brazilian beauty manufacturer and allow for further investments in the Latin American market.