Body Shop owner sells Aesop to L’Oreal for £2bn
Morgan Stanley served as lead financial advisor with Bank of America as financial advisor, and Davis Polk and Wardwell as main legal advisor to Natura
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Owner of The Body Shop Natura and Co has announced that it has sold Aesop to L’Oreal in a £2bn deal.
The luxury beauty brand has been sold after 10 years under the Natura umbrella.
The sale is still subject to the usual regulatory checks and is expected to be completed in Q3 of 2023.
The company stated that the sale will strengthen its finances and free up resources to focus on its strategic priorities.
These priorities include integration in Latin America, as well as the further optimisation of Avon International’s footprint and improvement of The Body Shop´s business.
In 10 years of Natura ownership Aesop’s gross sales increased from $28m (£22m) to $537m (£431m). The number of stores and counters increased from 52 to 395 as it expanded its geographic footprint from 8 markets to 29.
Fabio Barbosa, CEO of Natura, said: “The divestment of Aesop marks a new development cycle for Natura and Co. With a strengthened financial structure and a deleveraged balance sheet, Natura and 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 and Co what it is today. We are confident that Aesop’s growth story will continue under the ownership of L’Oréal and wish Aesop continued success in this new chapter.”
Nicolas Hieronimus, CEO of L’Oréal Groupe, added: “I am very excited to welcome Aesop and its teams to the L’Oréal Groupe family. 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.”
Morgan Stanley served as lead financial advisor with Bank of America as financial advisor, and Davis Polk and Wardwell as main legal advisor to Natura.
