L’Oreal has splashed £2billion on fancy hand wash maker Aesop in its biggest deal in decades.
The world’s largest cosmetics company has added Aesop, best known for its £31 soap, to its luxury division, alongside brands like Kiehl’s and Lancome, where Hollywood star Julia Roberts is a brand ambassador.
It marks the French group’s first major acquisition since Nicolas Hieronimus took over as boss two years ago, and the biggest for years.
Hollywood star Julia Roberts is a brand ambassador for L’Oreal’s brand Lancome
Its takeovers tend to be of smaller companies that have not been rolled out internationally. But Aesop is already sold across 400 locations, including in Asia and Europe, and its products have attracted a cult-like following.
The £2billion price tag makes it one of L’Oréal’s biggest purchases over the past quarter-century, according to S&P Global Capital IQ data.
Hieronimus said: ‘I am very excited to welcome Aesop and its teams to the L’Oréal family. Aesop is the epitome of avant-garde beauty.’
Aesop, which also sells hair and skincare products, ‘taps into all’ consumer trends that L’Oréal is keen to cash in on, such as for vegan products, Hieronimus said.
The Garnier and Maybelline owner said Aesop would be propelled further into China, where the soap-maker opened its first store last year.
Hieronimus, 59, who took over in May 2021, said the purchase would help Aesop ‘unleash its massive growth potential’ in both China and travel retail hubs like airports.
Aesop was founded in the 1980s by an Australian salon owner who mixed sage and rosemary essential oils into his products to hide the chemical smells of hair dye.
He started offering customers the products, growing to a business that made £430.3million sales last year. It has been owned by Brazil’s Natura & Co – which owns The Body Shop and Avon – since 2012.
#fiveDealsWidget .dealItemTitle#mobile {display:none} #fiveDealsWidget {display:block; float:left; clear:both; max-width:636px; margin:0; padding:0; line-height:120%; font-size:12px} #fiveDealsWidget div, #fiveDealsWidget a {margin:0; padding:0; line-height:120%; text-decoration: none; font-family:Arial, Helvetica ,sans-serif} #fiveDealsWidget .widgetTitleBox {display:block; float:left; width:100%; background-color:#af1e1e; } #fiveDealsWidget .widgetTitle {color:#fff; text-transform: uppercase; font-size:18px; font-weight:bold; margin:6px 10px 4px 10px; } #fiveDealsWidget a.dealItem {float:left; display:block; width:124px; margin-right:4px; margin-top:5px; background-color: #e3e3e3; min-height:200px;} #fiveDealsWidget a.dealItem#last {margin-right:0} #fiveDealsWidget .dealItemTitle {display:block; margin:10px 5px; color:#000; font-weight:bold} #fiveDealsWidget .dealItemImage, #fiveDealsWidget .dealItemImage img {float:left; display:block; margin:0; padding:0} #fiveDealsWidget .dealItemImage {border:1px solid #ccc} #fiveDealsWidget .dealItemImage img {width:100%; height:auto} #fiveDealsWidget .dealItemdesc {float:left; display:block; color:#004db3; font-weight:bold; margin:5px;} #fiveDealsWidget .dealItemRate {float:left; display:block; color:#000; margin:5px} #fiveDealsWidget .dealFooter {display:block; float:left; width:100%; margin-top:5px; background-color:#e3e3e3 } #fiveDealsWidget .footerText {font-size:10px; margin:10px 10px 10px 10px;} @media (max-width: 635px) { #fiveDealsWidget a.dealItem {width:19%; margin-right:1%} #fiveDealsWidget a.dealItem#last {width:20%} } @media (max-width: 560px) { #fiveDealsWidget #desktop {display:none;} #fiveDealsWidget #mobile {display:block!important} #fiveDealsWidget a.dealItem {background-color: #fff; height:auto; min-height:auto} #fiveDealsWidget a.dealItem {border-bottom:1px solid #ececec; margin-bottom:5px; padding-bottom:10px} #fiveDealsWidget a.dealItem#last {border-bottom:0px solid #ececec; margin-bottom:5px; padding-bottom:0px} #fiveDealsWidget a.dealItem, #fiveDealsWidget a.dealItem#last {width:100%} #fiveDealsWidget .dealItemContent, #fiveDealsWidget .dealItemImage {float:left; display:inline-block} #fiveDealsWidget .dealItemImage {width:35%; margin-right:1%} #fiveDealsWidget .dealItemContent {width:63%} #fiveDealsWidget .dealItemTitle {margin: 0px 5px 5px; font-size:16px} #fiveDealsWidget .dealItemContent .dealItemdesc, #fiveDealsWidget .dealItemContent .dealItemRate {clear:both} }
