L’Oreal has inked a deal to acquire an Australian luxury skincare brand, Aesop for EU 2.3 billion. A part of the Nature & Co company, Aesop has a wide range of products in its portfolio, including, skincare, body care, fragrance, and hair care. It also has many specialised stores in the world that provide expert consultation to customers in the stores.

According to Nicolas Hieronimus, CEO of L’Oreal, Aesop is a luxury beauty brand that offers luxury, urbanity, and hedonism. It keeps innovating its products as per the current trends and the deal with L’Oreal will help Aesop expand its reach in travel retail and China.

According to Cyril Chapuy, President L’Oreal Luxe, the brand’s design-led brand ethos and effective and sensorial products make it unique in the global luxury beauty market.

Speaking about the deal, Lia Neophytou, Lead Analyst of Health and Hygiene, said that this deal is in line with L’Oreal’s strategy of targeted acquisitions of established and emerging companies. It will leverage Aesop’s cult following, reputation, and robust brand identity. At the same time, it will expand Aesop’s growth in China, the brand’s latest market.

Aesop has 395 stores in 25 countries with an increase in gross sales by EUR 465 million between 2012-2022. In 2022, it opened its first physical store in China.