Luxury Beauty Brand Aesop Changes Hands in £2bn Deal

  • Natura sells Aesop to L’Oréal for £2bn
  • Sale expected to be completed in Q3 of 2023
  • Aesop’s growth from $28m to $537m under Natura ownership
  • Increase in stores and counters from 52 to 395
  • Expansion from 8 markets to 29
  • Natura focuses on Latin America integration, Avon International’s footprint optimization, and The Body Shop improvement
  • L’Oréal excited to contribute to Aesop’s growth potential in China and Travel retail

The Body Shop owner Natura has announced the sale of Aesop to L’Oréal for a £2bn deal, subject to regulatory checks. The luxury beauty brand was under Natura’s umbrella for 10 years. The sale is expected to be completed in Q3 of 2023. Aesop’s gross sales increased from $28m ($22m) to $537m ($431m), and the number of stores and counters grew from 52 to 395 as it expanded its geographic footprint from 8 markets to 29. Natura will focus on strategic priorities like Latin America integration, Avon International’s footprint optimization, and The Body Shop improvement. Morgan Stanley served as lead financial advisor with Bank of America as financial advisor, and Davis Polk and Wardwell as main legal advisor to Natura.

Factuality Level: 10
Factuality Justification: The article provides accurate information about the sale of Aesop to L’Oréal by Natura and Co, including details on the financial aspects, reasons for the sale, and statements from both companies. It also includes relevant background information on Aesop’s growth under Natura and Co’s ownership.
Noise Level: 3
Noise Justification: The article provides relevant information about the sale of Aesop to L’Oréal by Natura and Co, including the reasons behind the decision and the expected outcomes. It also includes quotes from key figures involved in the deal. However, it lacks analysis or exploration of long-term trends or possibilities, accountability, scientific rigor, and actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: L’Oreal and Natura & Co.
Financial Rating Justification: The article discusses the sale of Aesop, a luxury beauty brand, from Natura & Co. to L’Oreal for £2bn. This impacts financial markets as it involves a significant transaction between two major companies in the beauty industry and affects their finances. It also mentions Natura & Co.’s strategic priorities, which have an impact on their financial structure.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article. The sale of Aesop to L’Oréal is a financial transaction with minimal impact on the involved companies and their operations.

Reported publicly: www.retailsector.co.uk