L’Oreal buys Australian cosmetics brand Aesop for $2.5 billion
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Today, April 4, the French cosmetics company L’Oreal bought Australian cosmetics brand Aesop. The deal amounted to $2.5 billion in cash. Thus, this transaction became the largest in the history of the French company – it usually buys small brands and brings them to the international market itself. L’Oreal acquires the Australian brand from the Brazilian cosmetics company Natura. The deal is scheduled to close in the third quarter of this year.
Aesop is a luxury brand specializing in cosmetics based on natural plant ingredients. The company was founded in Melbourne in 1987. Now the company has about 400 stores in 27 countries. Aesop’s revenue grew 21% last year to $537 million.
Brazil’s Natura, which owns The Body Shop and Avon, among other brands, has recently experienced a significant drop in profits, the company has accumulated debts. Now she is restructuring, the sale of Aesop will help her improve the situation. Natura shares rose today, April 4, by 2.8%, since the beginning of the year they have fallen by 17%. L’Oreal will be able to expand its brand portfolio as a result of the deal. Among other things, according to the company, the purchase of Aesop will help expand business in China – last year the Australian brand entered the local market and immediately showed good results.
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