L’Oreal, the French cosmetics giant, has recently acquired Australian luxury cosmetics brand Aesop in a historic $2.53 billion deal, marking its largest-ever brand acquisition. Previously owned by Brazil’s Natura & Co since 2012, Aesop is renowned for its high-quality skincare, haircare, and fragrance products. The brand’s headquarters are located in Fitzroy, Victoria, Australia.

 

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The acquisition of Aesop is a strategic move by L’Oreal to strengthen its position in the premium skincare and wellness market, with a particular focus on international expansion, including China. L’Oreal, which owns labels such as Maybelline and Lancome, has been moving upmarket to cater to consumers less affected by economic downturns. This deal provides Natura, the owner of Avon and The Body Shop, with financial relief from shrinking margins and heavy debt. L’Oreal CEO Nicolas Hieronimus sees “massive growth potential” in Aesop, particularly in China, where the Australian brand made its debut with two stores in the last quarter of 2022.