PARIS — What are L’Oréal’s plans for Aesop, the Australian luxury personal care company that the group just signed an agreement to acquire, marking its largest M&A move to date?
Cyril Chapuy, president of L’Oréal Luxe, outlined strategy following the deal that was announced late Monday night.
As previously reported, the proposed transaction with the seller, Brazil’s Natura & Co., values Aesop at more than $2.5 billion. Aesop’s sales in 2022 were $537 million.
L’Oréal has expressed confidence that Aesop will in the near future join the Luxe division’s coterie of “billionaire brands,” which also include Lancôme, Yves Saint Laurent, Giorgio Armani Beauty and Kiehl’s.
WWD: What drew L’Oréal to Aesop?
C.C.: Aesop is a very unique luxury beauty brand, and I’ve been following it and loving it for quite some time. When the opportunity presented itself, we truly believed this would be a fantastic addition to the L’Oréal Luxe portfolio. Its design-led brand essence, its highly efficacious and sensorial products, as well as its customer-obsessed retail philosophy are very differentiating on today’s beauty market.
WWD: How does Aesop fit into L’Oréal Luxe’s portfolio of brands?
C.C.: Aesop is a true complementary brand to our portfolio, and its signature positioning will be a key asset for our future development. [It is] a brand that has been traditionally centered around body care, and has more recently expanded into skin care and fragrances, which anchors it to the luxury beauty market. Quite simply, Aesop is a diamond of holistic beauty that will make our Luxe division even stronger.
WWD: What are some other key strengths of Aesop?
C.C.: Aesop is known for its efficacious and sensorial products, with plant-based ingredients and sustainable vegan formulations. Aesop’s strong brand ethos and core social and environmental values are key to its success.
WWD: What will be leveraged at Aesop?
C.C.: From a category standpoint, we are the leaders in fragrances, [and] we believe we can take the brand to new heights here, thanks to our unique olfactory savoir-faire. And the skin care will benefit from our innovation and R&I capabilities. From a geographical standpoint, we will leverage our knowledge of the Chinese market and expertise in travel retail.
WWD: Which are the first orders of the day as L’Oréal integrates Aesop?
C.C.: My first two priorities for this will be the completion of the deal that is expected by H2 and second, welcoming the Aesop [chief executive officer] Michael O’Keeffe with his experienced and talented team. We aspire to cultivate Aesop’s uniqueness and values, and to take the brand to new heights together.
WWD: How will L’Oréal develop Aesop’s retail network?
C.C.: Aesop currently operates around 400 points of sale across the Americas, Europe, Australia, New Zealand and Asia, with a nascent footprint in China, where we have two stores in Shanghai. L’Oréal Luxe will nurture this footprint and grow new opportunities, while continuing to take care of the brand.
WWD: Will L’Oréal continue to make acquisitions in the luxury beauty segment?
C.C.: We are always looking and assessing great opportunities to ensure we have the best and most relevant portfolio of luxury brands.