(Reuters) – L’Oreal has reached an agreement with Brazilian group Natura & Co to acquire Australian luxury brand Aēsop for an enterprise value of $2.52 billion, the two companies said on Monday.
This operation will allow the French giant to strengthen its presence in the luxury market, while it will offer Natura a breath of fresh air while the Brazilian group is undermined by debts and has seen its margins shrink.
In a press release, L’Oréal points out that Aēsop is distributed in approximately 400 exclusive points of sale in America, Europe, Australia, New Zealand and Asia, with 537 million dollars in sales last year – an increase of 21 % over one year at constant exchange rate.
“Aēsop is taking advantage of all current consumer updrafts and L’Oréal will help accelerate its huge growth potential, especially in China and in travel retail,” said L’Oréal CEO Nicolas Hieronimus, in the press release.
Natura indicated for its part that this transaction would make it possible to accelerate its deleveraging and refocus its strategy.
The Brazilian group has specified that the operation should be finalized in the third quarter of 2023.
(Report Peter Frontini in Sao Paulo, written by Jean Terzian)
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