Natura Divests Aesop To L'Oréal For $2.5B; Plans To Focus On Strategic Priorities

Author: Shivani Kumaresan | April 04, 2023 06:03am

French skincare giant L'Oreal Co.(OTC:LRLCY) has agreed to acquire Aesop, the Australian luxury beauty brand, from Natura &Co Holding S.A. (NYSE:NTCO). The proposed transaction values Aesop at an enterprise value of $2.525 billion.
Aēsop, created in 1987, currently operates around 400 points of sale across the Americas, Europe, Australia, New Zealand, and Asia.
The brand, which became part of Natura in 2012, registered $537 million in sales in FY22.
The transaction is expected to close in the third quarter of 2023.
With the transaction, Natura expects 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 optimization of Avon International's footprint and the improvement of The Body Shop's business.
Price Action: NTCO shares closed higher by 2.11% at $5.33 on Monday.
Photo Via Company