French skincare company L'Oreal has reached an agreement to acquire Australian luxury cosmetics brand Aesop for an enterprise value of $2.53 billion.
According to a statement from Aesop's Brazilian owner Natura and Co on Tuesday, the transaction is still subject to customary regulatory approvals and was expected to close in the third quarter of this year.
The deal will help Natura &Co pay its debt and strengthen and deleverage its balance sheet.
Aesop's gross sales increased to $537 million in 2022 from $28 million in 2012, when it became part of Natura and Co.
The number of stores and counters rose from 52 to 395 as Aesop expanded its geographic footprint from eight markets to 29.
Aesop opened its first physical store in mainland China in 2022.
Natura chief executive Fabio Barbosa said the company will be able to focus more on its strategic priorities, notably its investment plan in Latin America.
"We will also be able to concentrate on continuing to improve The Body Shop's business and refocusing Avon International's footprint," Barbosa added.
Nicolas Hieronimus, CEO of L'Oreal Group, said: "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."
