L’Oreal to buy skincare brand Aesop in $2.5bn deal

L’Oreal has agreed to buy Australian skincare brand Aesop from Brazil’s Natura & Co in a $2.5n deal.

The acquisition, which is still subject to customary regulatory approvals, is expected to close in the third quarter.

Chief executive Nicolas Hieronimus said: "I am very excited to welcome Aesop and its teams to the L'Oréal Groupe family. Aesop is the epitome of avant-garde beauty, whose products are not only made with great care and exceptional attention to detail; they are a superb combination of urbanity, hedonism and undeniable luxury.

"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."

Natura & Co said the deal will allow it to strengthen and deleverage its balance sheet, freeing up resources to focus on its strategic priorities, "notably the integration in Latin America, as well as the further optimisation of Avon International's footprint and the improvement of The Body Shop´s business".