The beauty industry has been buzzing with news of the massive $2.5 billion acquisition of Aesop by L’Oréal, one of the world’s biggest cosmetics companies. The deal marks L’Oréal’s biggest acquisition in the luxury beauty sector and is sure to have a lasting impact on the industry.

Aesop’s Rise Under Natura & Co 

Before its sale, Aesop was owned by Brazilian personal care company Natura & Co. In just eight years, the brand’s sales skyrocketed from $28 million to an astonishing $537 million. Throughout this period, Aesop maintained its dedication to quality ingredients, minimalistic packaging and unique retail spaces which helped it stand out in a crowded beauty market.

@thelipsticklesbians 🚨BREAKING BEAUTY NEWS @lorealgroupe officially signs deal to acquire yet another brand, Aesop skincare according to @wwd. Aesop is one of my favorites personal care brands, and this acquistion is huge, valuing Aesop at a whopping $2.25 billion dollars. Have you used Aesop? What do you think of the acquisition? Let us know in the comments. #m#makeupb#beautytokb#beautyindustryb#beautyinsidera#aesopskincaret#thelipsticklesbians ♬ Breaking News – Breaking News

What Does L’Oréal Have Planned? 

According to L’Oréal, Aesop will remain independent and focus on expanding globally – particularly in the Chinese market. Meanwhile, Natura & Co plans to shift its attention to its Avon and The Body Shop businesses. 

This acquisition is a major win for L’Oréal, as they now have access to Aesop’s coveted natural skincare and body care products. It also gives them the opportunity to tap into Aesop’s loyal customer base around the world. 

In addition to gaining access to Aesop’s coveted products, the acquisition gives L’Oréal the opportunity to leverage Aesop’s established reputation for quality. LVMH, Shiseido and even a US IPO for Aesop had all been rumoured prior to the L’Oréal deal. Now that it is clear that L’Oréal has won the acquisition race, analysts are speculating what this could mean for the future of luxury beauty. 

The Acquisition: Analysis & Impact 

The acquisition of Aesop by one of the world’s biggest cosmetics companies has left many wondering what changes may come to the beloved brand. Fans of Aesop are concerned that L’Oréal could potentially change the company’s operations in order to maximise profits, which could compromise the quality and integrity of its products. 

It is too soon to say what impact this acquisition will have on the beauty industry, but one thing is clear – this deal has given L’Oréal a foothold in the luxury sector and is likely to pave the way for more deals in the coming years.  We can only wait and see how Aesop will perform under its new ownership.