The transaction will help the Brazilian beauty giant reduce its debt burden and focus on turning around other businesses.
L’Oréal has agreed to acquire Australian high-end cosmetics brand Aesop from Natura & Co Holding in a $US2.53 billion deal.
Natura had been mulling a partial or total sale of Aesop as part of a broader overhaul being conducted by Fabio Barbosa, who took over as chief executive officer last year. Barbosa has sought to simplify the company’s structure and cut costs. Known for its natural, ethically sourced cosmetics, Sao Paulo-based Natura faced a hard time trying to expand globally, with disruptions brought on by the pandemic and Russia’s war in Ukraine leading to cost-inflation pain.
“With a strengthened financial structure and a deleveraged balance sheet, Natura & Co, exercising strict financial discipline, will be able to sharpen its focus on its strategic priorities, notably our investment plan in Latin America,” Barbosa said in a statement.was increasingly seen by investors as the crown jewel of the group, which saw other businesses including Avon and Body Shop grow at a slower pace.
In a survey with 32 local and foreign investors ahead of the transaction, Banco Bradesco BBI said most of its clients expected Natura to sell 100 per cent of Aesop at a valuation range of between $US2 billion and $US2.5 billion.“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,” said Nicolas Hieronimus, L’Oréal’s CEO, in the statement.
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