LVMH, L’Oreal and Shiseido Are All Vying to Buy a Stake in Aesop
Looks like luxury skincare is in with deep-pocketed investors.
Fashion heavyweight LMVH and beauty-industry leader L’Oreal are now the two top names looking to potentially acquire a stake in Australian cosmetics company Aesop, Bloomberg reports. The brand, which may be valued at $2 billion or more, is renowned for its luxe skin, body and hair care, as well as home fragrances. Shiseido, a Japanese beauty group, is also weighing placing a bid for the company, according to sources familiar with the matter.
More from Robb Report
Todd Snyder's First Fragrance With D.S. & Durga Was Designed to Smell Like a Day at the Beach
The Best Electric Toothbrushes to Keep Your Teeth Clean, Healthy and Bright
From LVMH to Neiman Marcus, CEOs Are Excited About Luxury in 2023. Here's Why.
In 2012, Brazilian cosmetics maker Natura & Co. agreed to buy a 65 percent stake in Emeis Holdings, which operates under the Aseop brand name in Australia, Asia, Europe and North America, for a whopping $71.6 million. Natura’s deal to acquire the company was officially completed in 2016. Fast forward to 2022, when Natura began working with Bank of America Corp. and Morgan Stanley to sell a stake in the skincare brand, which seemingly turned heads.
As of Monday, Bloomberg reports that shares in Natura were trading 13 percent higher at 10:23 am in São Paulo, giving the company a high-market value of $3.9 billion (20.1 billion reais). Remaining anyonomous, people familiar with the matter claim deliberations are currently ongoing, with no guarantees that they will result in any offers for a stake in Aesop.
Tough markets for new listings in 2022 are part of the reason why Natura leaned toward a stake sale at the time. Bloomberg also reports that the move is being orchestrated by Fabio Barbosa, who took over as Natura CEO last year. According to a company filing in October, the brand aimed to unlock value at Aesop by possibly launching an IPO or a spinoff of the business, among other ideas. According to e-commerce platform Oberlo, the global beauty industry market size is set to be worth a staggering $571.1 billion in 2023.
With that said, selling a stake to LVMH or L’Oreal—both of which manage massive beauty brands from Dior to Maybelline—may do much more than just unlocking Aesop’s potential.
Best of Robb Report
The 10 Most Expensive Watches Sold at Auction in the 21st Century (So Far)
Sign up for Robb Report's Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.