NTCO - Natura &Co confirms divestiture of Melbourne-based Aesop to L'Oreal for enterprise value $2.525B

2023-04-04 03:27:22 ET

• A?ustralian natural skincare company Aesop has been sold to international cosmetics giant L'Oréal ( OTCPK:LRLCY ) in a $2.53B deal, its Brazilian parent Natura &Co ( NYSE: NTCO ) announced today.
• The deal is one of the biggest acquisitions of an Australian luxury business.?
• The all-cash sale will allow Natura to strengthen its finances and allow it to “focus on strategic priorities” on its Avon brand and steady improvement of The Body Shop business, Natura said in a statement on Tuesday.
• Founded in 1987, Melbourne-based Aesop, which uses herbal ingredients, has steadily grown into a popular brand. In 2012, Aesop sold a majority stake in Natura, which became wholly owned by the Brazilian company four years later.
• Last year, the brand opened its first stores in China, the most important growth market for luxury goods worldwide.
• After the sale, Aesop will be part of L'Oreal's Luxe portfolio, along with Youth to the People, an American skincare company based in California, acquired in 2021.
• Cyril Chapuy, the president of L’Oreal Luxe, said Aesop chief executive Michael O’Keeffe and his teams would join L’Oreal and continue to grow the brand. London-based Mr O’Keeffe has been CEO of Aesop since 2003.
• The deal is still subject to customary regulatory approvals and is expected to close in Q3 2023.
• Last year in October, the Sao Paulo-listed company said it was looking to sell the business or potentially spin it off via an initial public offering .

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