Natura Cosméticos, the leading Brazilian manufacturer and direct seller of cosmetics, toiletries and fragrances, and Aesop, the Australia-based personal care company, have entered into a definitive agreement, under which Natura will acquire a 65% stake in Aesop for approximately 68 million Australian dollars (about 71 million US dollars), which includes the anticipated acquisition of Aesop’s distributors.
Aesop was created in Melbourne (Australia) in 1987 as a brand of plant-based products for the skin, hair and body. Today, Aesop operates more than 60 retail locations in 11 countries, and is expected to generate approximately 64 million Australian dollars in sales in the fiscal year ending June 2013.
Natura and Aesop will continue to operate independently, Aesop will remain headquartered in Melbourne and its current Chief Executive Officer, Michael O’Keeffe, will continue to run the company. Aesop’s founder, Dennis Paphitis, will remain involved with the company as an advisor.
This acquisition could help the Natura group to accelerate its development outside Latin America. Natura says its investment will support Aesop’s current management team as they accelerate the growth of the brand internationally. In particular, Aesop could soon enter the Brazilian market. In parallel, Natura could benefit from Aesop’s experience and explore the concept of signature stores in select markets.
“The investment in Aesop is consistent with our long-term strategy of aligning with world-class brands with strong value propositions, and exposure to markets beyond Latin America,” said Alessandro Carlucci, Chief Executive Officer of Natura. “We look forward to supporting Aesop’s talented management team, led by Michael O’Keeffe, who have created a powerful global brand and product offering supported by unique and compelling signature stores and retail environments. We expect to leverage these competencies as we evaluate expansion into additional markets and seek to build a truly global brand,” Mr. Carlucci continued.