L’Oreal buys luxury cosmetics giant Aesop in £2bn deal

L’Oréal has spent £2 billion on luxury handwash maker Aesop in its biggest deal in decades.

The world’s largest cosmetics company has added Aesop, best known for its £31 bar of soap, to its luxury division, alongside brands such as Kiehl’s and Lancome, where Hollywood star Julia Roberts is a brand ambassador.

It is the French group’s first major acquisition since Nicolas Hieronimus took over as boss two years ago, and the biggest in years.

The acquisitions are mostly from smaller companies that have not been rolled out internationally. But Aesop is already sold in 400 locations, including in Asia and Europe, and its products have gained a cult following.

The £2bn price tag makes it one of L’Oréal’s largest purchases in the past quarter century, according to data from S&P Global Capital IQ.

Hieronimus said, “I am very excited to welcome Aesop and his teams to the L’Oréal family. Aesop is the epitome of avant-garde beauty.’

Aesop, which also sells hair and skin care products, “catches all” consumer trends that L’Oréal likes to tap into, such as for vegan products, Hieronimus said.

The owner of Garnier and Maybelline said Aesop would be driven further into China, where the soapmaker opened its first store last year.

Hieronimus, 59, who took over in May 2021, said the purchase would help Aesop “unleash its massive growth potential” in both China and travel malls such as airports.

Aesop was founded in the 1980s by an Australian salon owner who mixed sage and rosemary essential oils into his products to hide the chemical smells of hair dye.

He started offering customers the products and grew into a company that made £430.3 million in sales last year. It has been owned by Brazil’s Natura & Co since 2012, which owns The Body Shop and Avon.