The sale, L’Oreal’s biggest-ever brand acquisition according to Dealogic statistics, strengthens the firm’s foothold in the premium cosmetics sector, while also giving the Brazilian business some financial respite despite declining margins and hefty debt.
L’Oreal is a French multinational firm specializing in beauty and personal care goods. L’Oreal works in more than 150 countries and has a varied range of brands that cater to various beauty demands. The firm is recognized for its creative goods and is devoted to sustainability and ethical standards.
The firm offers a varied range of products that cater to different beauty demands and target distinct customer categories.
L’Oreal works in more than 150 countries and has a complicated supply chain that comprises acquiring raw ingredients and producing goods. Ultimately, the workings of L’Oreal entail a broad variety of operations, from product development to supply chain management, marketing, and corporate social responsibility programs.
L’Oreal has also been acknowledged for its work in encouraging diversity and inclusion in the beauty sector. French cosmetics central L’Oreal inked a deal with Brazil’s Natura & Co to purchase Aesop, its Australian luxury brand, for an enterprise value of $2.53 billion, the businesses announced on Monday.
The sale, L’Oreal’s biggest-ever brand acquisition according to Dealogic statistics, strengthens the firm’s foothold in the premium cosmetics sector, while also giving the Brazilian business some financial respite despite declining margins and hefty debt.
The purchase is also the third biggest on record of an Australian business in the consumer goods industry, the statistics indicated.
The brand, Natura’s most lucrative, maintains over 400 outlets and generated sales of $537 million in 2022, up 21% in constant currency from a year earlier.
It also claimed double-digit growth across all its markets last year, and said it had entered the Chinese market “with exceptional results that surpassed expectations“.
“Aesop taps into all of today’s rising currents and L’Oreal will help to unlock its tremendous development potential, particularly in China and travel retail,” L’Oreal CEO Nicolas Hieronimus said in a statement.
For Natura, the purchase adds to a bigger organizational shakeup that saw previous chief executive and executive chairman Roberto Marques step down in June last year, turning over the reins to Fabio Barbosa.
The company stated the sale would help it is financial deleverage and concentrate on strategic goals such as the integration of its Latin America businesses, “as well as the further optimization of Avon International’s footprint and the continuous development of The Body Shop’s business“.
The transaction, which is subject to regulatory clearances, will be paid in cash on its closing date, likely in the third quarter of 2023, Natura said. Melbourne-headquartered Aesop was created in 1987 and sells skin, hair, and body care products.
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