With a strengthened financial
structure, Natura &Co to focus on strategic
priorities
SÃO PAULO, April 3, 2023
/PRNewswire/ -- Natura &Co (NYSE – NTCO; B3 – NTCO3) announces
that it has reached an agreement under which L'Oréal will acquire
Aesop, opening a new chapter of the luxury beauty brand's growth
story after 10 successful years under Natura &Co's
stewardship.
Under the transaction, L'Oréal has signed an agreement to
acquire Aesop for an enterprise value of US$
2.525 bn. The transaction is still subject to customary
regulatory approvals and is expected to close in Q3 2023.
With the transaction, Natura &Co will 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.
Since becoming part of Natura &Co in 2012, Aesop has posted
spectacular growth. Between 2012 and 2022, gross sales increased
from US$28 million to US$537 million. The number of stores and counters
increased from 52 to 395 as Aesop expanded its geographic footprint
from 8 markets to 29. More recently, in 2022, Aesop opened its
first physical stores in Mainland China, and significantly grew its
fragrance category.
Fabio Barbosa, Chief Executive
Officer of Natura &Co, declared: "The divestment of Aesop marks
a new development cycle for Natura &Co. With a strengthened
financial structure and a deleveraged balance sheet, Natura
&Co, exercising strict financial discipline, will be able to
sharpen its focus on its strategic priorities, notably our
investment plan in Latin America.
We will also be able to concentrate on continuing to improve The
Body Shop's business and refocusing Avon International's footprint.
We are proud of the remarkable success of the Aesop brand, and we
are extremely grateful to all Aesop's associates, who contributed
immensely not only to Aesop's success, but also to making Natura
&Co what it is today. We are confident that Aesop's growth
story will continue under the ownership of L'Oréal and wish Aesop
continued success in this new chapter."
Nicolas Hieronimus, Chief
Executive Officer of L'Oréal Groupe, said, "I am very excited to
welcome Aesop and its teams to the L'Oréal Groupe family. Aesop is
the epitome of avant-garde beauty, whose products are not only made
with great care and exceptional attention to detail; they are a
superb combination of urbanity, hedonism and undeniable luxury.
Aesop taps into all of today's ascending currents and L'Oréal will
contribute to unleash its massive growth potential, notably in
China and Travel retail."
Michael O'Keefe, CEO of Aesop,
added: "This is an exciting day for Aesop. With the support of
Natura &Co, over the past decade, we have built Aesop into an
admirable global force in the luxury beauty space, with a powerful
product proposition and a unique customer and retail
experience. We now enter the next phase of our development
and I'm confident that with L'Oréal's partnership we will be able
to bring our exceptional skincare products to even more people and
continue to expand our brand globally. We thank Natura &Co for
its support and are greatly looking forward to working with L'Oréal
to continue our development, building on our distinctive brand and
heritage."
Morgan Stanley served as lead financial advisor, Bank of America
as financial advisor, and Davis Polk
& Wardwell as main legal advisor to Natura &Co.
About Natura &Co
Natura &Co is a global,
purpose-driven, multi-channel and multi-brand cosmetics group which
includes Avon, Natura, The Body
Shop and Aesop. Natura &Co posted net revenues of R$36.3 billion in 2022. The four companies that
form the group are committed to generating positive economic,
social and environmental impact. For 136 years Avon has stood for women: providing
innovative, quality beauty products which are primarily sold to
women, through women. Founded in 1969, Natura is a Brazilian
multinational in the cosmetics and personal care segment, leader in
direct sales. Founded in 1976 in Brighton, England, by Anita Roddick, The Body Shop is a global beauty
brand that seeks to make a positive difference in the world. The
Australian beauty brand Aesop was established in 1987 with a quest
to create a range of superlative products for skin, hair and the
body.
About Aesop
Aesop is an aspirational, luxury brand,
that provides efficacious and sensorial products across multiple
beauty and wellness categories, including hair, body, skin, home,
and fragrance. Since its creation in 1987, Aesop has delivered
significant organic growth while maintaining its strong brand ethos
and staying true to its core social and environmental values. Its
global footprint of over 395 uniquely designed locations, elegant
customer experience and purpose-driven approach have proven
particularly attractive to a loyal and expanding community of
customers, and the company is now well positioned to become a
pioneer in the luxury beauty space. Aesop is proudly a Certified B
Corporation®.
Press Contact
Brunswick Group
São Paulo + 55 11 3076 7620
London + 44 020 7404 5959
natura@brunswickgroup.com
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