With a strengthened financial structure, Natura &Co to focus on strategic priorities
SÃO PAULO, April 03, 2023 — Natura &Co (NYSE – NTCO; B3 – NTCO3) announces that it has reached an agreement under which L’Oréal will acquire Aesop, opening a new chapter of the luxury beauty brand’s growth story after 10 successful years under Natura &Co’s stewardship.
Under the transaction, L’Oréal has signed an agreement to acquire Aesop for an enterprise value of US$ 2.525 bn. The transaction is still subject to customary regulatory approvals and is expected to close in Q3 2023.
With the transaction, Natura &Co will 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 optimization of Avon International’s footprint and the improvement of The Body Shop´s business.
Since becoming part of Natura &Co in 2012, Aesop has posted spectacular growth. Between 2012 and 2022, gross sales increased from US$28 million to US$537 million. The number of stores and counters increased from 52 to 395 as Aesop expanded its geographic footprint from 8 markets to 29. More recently, in 2022, Aesop opened its first physical stores in Mainland China, and significantly grew its fragrance category.
Fabio Barbosa, Chief Executive Officer of Natura &Co, declared: “The divestment of Aesop marks a new development cycle for Natura &Co. With a strengthened financial structure and a deleveraged balance sheet, Natura &Co, exercising strict financial discipline, will be able to sharpen its focus on its strategic priorities, notably our 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. We are proud of the remarkable success of the Aesop brand, and we are extremely grateful to all Aesop’s associates, who contributed immensely not only to Aesop’s success, but also to making Natura &Co what it is today. We are confident that Aesop’s growth story will continue under the ownership of L’Oréal and wish Aesop continued success in this new chapter.”
Nicolas Hieronimus, Chief Executive Officer of L’Oréal Groupe, 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.”
Michael O’Keefe, CEO of Aesop, added: “This is an exciting day for Aesop. With the support of Natura &Co, over the past decade, we have built Aesop into an admirable global force in the luxury beauty space, with a powerful product proposition and a unique customer and retail experience. We now enter the next phase of our development and I’m confident that with L’Oréal’s partnership we will be able to bring our exceptional skincare products to even more people and continue to expand our brand globally. We thank Natura &Co for its support and are greatly looking forward to working with L’Oréal to continue our development, building on our distinctive brand and heritage.”
Morgan Stanley served as lead financial advisor, Bank of America as financial advisor, and Davis Polk & Wardwell as main legal advisor to Natura &Co.
About Natura &Co
Natura &Co is a global, purpose-driven, multi-channel and multi-brand cosmetics group which includes Avon, Natura, The Body Shop and Aesop. Natura &Co posted net revenues of R$36.3 billion in 2022. The four companies that form the group are committed to generating positive economic, social and environmental impact. For 136 years Avon has stood for women: providing innovative, quality beauty products which are primarily sold to women, through women. Founded in 1969, Natura is a Brazilian multinational in the cosmetics and personal care segment, leader in direct sales. Founded in 1976 in Brighton, England, by Anita Roddick, The Body Shop is a global beauty brand that seeks to make a positive difference in the world. The Australian beauty brand Aesop was established in 1987 with a quest to create a range of superlative products for skin, hair and the body.
About Aesop
Aesop is an aspirational, luxury brand, that provides efficacious and sensorial products across multiple beauty and wellness categories, including hair, body, skin, home, and fragrance. Since its creation in 1987, Aesop has delivered significant organic growth while maintaining its strong brand ethos and staying true to its core social and environmental values. Its global footprint of over 395 uniquely designed locations, elegant customer experience and purpose-driven approach have proven particularly attractive to a loyal and expanding community of customers, and the company is now well positioned to become a pioneer in the luxury beauty space. Aesop is proudly a Certified B Corporation®.
Press Contact
Brunswick Group
São Paulo + 55 11 3076 7620
London + 44 020 7404 5959
natura@brunswickgroup.com
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