Yesterday, L'Oral won out and signed an agreement with Natura &Co to acquire Aesop in a transaction that values the beauty brand at $2.525 billion. Natura &Co sells Aesop to L'Oral | Morningstar Shares in the firm rose as much as 4.5% before paring some gains following the announcement, making Natura one of the top gainers on Brazil's benchmark stock index Bovespa, The move would add to a broader organizational shakeup that saw chief executive and executive chairman Roberto Marques. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. Natura &Co is a global, purpose-driven, multi-channel and multi-brand cosmetics group which includes Avon, Natura, The Body Shop and Aesop. Natura first announced in October it had begun studying a possible Aesop spin-off or IPO in the United States. In fact, when So Paulo-based Natura & Co bought a 65 percent stake in Aesop directly from its founder Dennis Paphitis in 2012, a quarter century after it was founded, it signaled an intention to become a major player on the global beauty stage. This is not easy to execute. I am an author and journalist with a focus on market news. Courtesy of Aesop. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. Natura said in a securities filing that a final decision would be made by its board of directors after the evaluation of several alternatives, not ruling out a potential initial public offering (IPO) or spin-off of luxury brand Aesop. Shares in the firm rose as much as 4.5% before paring some gains following the announcement, making Natura one of the top gainers on Brazil's benchmark stock index Bovespa .BVSP, which was up 0.5%. Fabio Barbosa, chief executive of Natura & Co, explained: 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. Aesop, the . Benzinga does not provide investment advice. You need to be logged in to use this feature. Aesop works with the Bank of America its the morgan stanley as it explores selling a stake in the business, as Bloomberg reported last year. Natura mulls Aesop alternatives | LatinFinance.com I really like that Aesop works with different architects, yet seamlessly holds the brand identity intact in all their stores and points of sale, Maddocks says. There are currently no items in your cart. This site is protected by reCAPTCHA Enterprise and the Google. The brand has also expanded its geographic footprint from eight markets to 29 and has recently opened its first physical stores in mainland China. Theres nothing even remotely like Aesop in Shiseidos current portfolio, and that could make all the difference. Natura focused on 'disciplined allocation' after Aesop sale; shares rise That attention to detail plays out in the Aesop store designs, which, thanks to an ever-shifting roster of architects, ensures that no two are alike. The acquisition is expected to complete in the third quarter of 2023. The brand has also expanded its geographic . However, deliberations are still ongoing and there is no certainty that they will result in offers for the brand. Natura &Co: our shared history "The news. Aesop is proudly a Certified B Corporation. Somehow, when I wasnt looking, this quietly lovely line, founded in 1987 and steeped in natural ingredients, had morphed into a covetable, highly profitable powerhouse. Brazilian cosmetics company Natura again confirmed that it is considering the sale of Australian luxury brand Aesop following press reports that LVMH, L'Oral and Shiseido were among the interested bidders. Sao Paulo-listed Natura, which manufactures and sells cosmetics, toiletries and fragrances, acquired a 65 per cent stake for $68 million in cash. October 18, 2022, 7:18am. Natura has started receiving preliminary consultations for the purchase of a stake in Aesop, a luxury brand of the Brazilian cosmetics giant, sources say. Natura &Co sells Aesop to L'Oral - Natura &Co Aesop's new store on London's Regent Street. Natura &Co posted net revenues of R$36.3 billion in 2022. The firm, which grew through high profile acquisitions in recent years before an organizational shakeup that saw Barbosa taking the reins last year, is now looking to improve operations in Latin America as well as Avon International and The Body Shop operations, he said. About AesopAesop is an aspirational, luxury brand, that provides efficacious and sensorial products across multiple beauty and wellness categories, including hair, body, skin, home, and fragrance. ", Nicolas Hieronimus, Chief Executive Officer of L'Oral Groupe, said, "I am very excited to welcome Aesop and its teams to the L'Oral Groupe family. With 35,000 employees in 100 . The Brazilian brand owner was initially exploring an initial public offering (IPO) for Aesop, but the current volatility of the market caused the company to reassess its focus. Thats supports a healthy business model.. 19882023 Latin American Financial Publications Inc. LVMH, L'Oral and Shiseido are reportedly interested in buying the Australian luxury brand from the Brazilian cosmetics company, Igu issues long-term debt for Rio concession. 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. We are confident that Aesop's growth story will continue under the ownership of L'Oral and wish Aesop continued success in this new chapter. Cosmetics maker Natura &Co is working with Bank of America Corp. and Morgan Stanley to sell a stake in its Aesop unit, according to people familiar to the matter. SAO PAULO, April 4 (Reuters) - The chief executive of Brazilian cosmetics maker Natura &Co Holding SA (NTCO3.SA) said on Tuesday the company was now focused on a disciplined capital allocation and deleveraging after it agreed to sell luxury brand Aesop to L'Oreal (OREP.PA). Capital Computer Group, LLC. 19882023 Latin American Financial Publications Inc. Brazilian cosmetics company considers the sale of a minority stake in the Australian luxury brand, Igu issues long-term debt for Rio concession, Macquarie REIT signs sustainability-linked loans in Mexico. Beauty Giant Natura Weighs Aesop IPO After $12 Billion Stock Rout Fabio Barbosa, current Chairman of the People Committee, took over Marques to lead the company. This website is using a security service to protect itself from online attacks. Fabio Barbosa told reporters Natura's financial leverage was "practically going down to zero" following the transaction, considering both debt repayments and the cash raised, but added it was time . L'Oral announced today that it has signed an agreement with Natura &Co to acquire Asop, the Australian luxury beauty brand.The proposed transaction values Asop at an enterprise value of USD 2.525 billion.Created in 1987, Asop is world widely renowned for its skin, hair and body products. At the maximum of the day, the shares of the cosmetics Cloudflare Ray ID: 7de7c38a6fc9372f April 3, 2023, 6:05pm. Brazil's Natura buys skincare group Aesop for $68m - Financial Review the luxury group LVMH and French skincare giant LOreal are among the companies in consumption who study bids for a stake in the subsidiary of Naturabeing able to value the brand at at least US$ 2 billion, according to Bloomberg. In this article. L'Oral Agrees to Acquire Aesop from Natura &Co for $2.5 Billion The movement of Natura&Co (NTCO3) shares the day before, after the closing of the sale of Aesop to L'Oral for US$ 2.525 billion (above expected), intrigued JPMorgan analysts. Know more! The shares of Natura (NTCO3) soared 15% this Monday (30), leading the highs of the Ibovespa. Natura Cosmticos SA acquired 35% stake in Aesop Retail Pty Ltd. Gain access to the latest news and deal analysis in Latin America and the Caribbean. It requires the team in charge to really understand the core values and personality of the brand and stay true to the absolute integrity always., Given our collective microscopic attention spans these days, going above and beyond to make a store uniquely captivating and to incorporate elements of the neighborhood its inhabiting, as both Aesop and Kiehls have excelled at is just smart business. Quality Counts: Why the $2 Billion Bidding War for Aesop Makes Perfect Natura & Co is to sell its Aesop luxury skincare brand to L'Oral in a $2.5 billion deal. My work has been published in international publications and I have delivered talks at both academic institutions and business conferences around the world. Natura Considers Aesop IPO in the U.S. or a Spin-off - WWD Natura & Co is reportedly considering selling a minority stake of beauty brand Aesop. Despite the Walmart blip, Aesop brings something to the table that Natura & Cos other brands dont: a status-y presence in the upscale hospitality world. Natura &Co Considers Selling Minority Stake in Aesop So, if Aesop is so beloved, with such strong global cachet, why is Natura & Co. looking to offload it? It also keeps industry giants like LVMH, LOral and Shiseido on high acquisition alert. One wonders how many $106.95 bottles of Resolute Hydrating Body Balm Walmart shoppers are tossing in their carts alongside the Eggo waffles and Brawny paper towels. With a strengthened financial structure,Natura &Co to focus on strategic priorities. You can email the site owner to let them know you were blocked. S&P Capital IQ - 2016 Latest news about Natura &Co Holding S.A. SAO PAULO, April 4 (Reuters) - The chief executive of Brazilian cosmetics maker Natura &Co Holding SA (NTCO3.SA) said on Tuesday the company was now focused on a disciplined capital allocation. he owner of Natura, Avon, Aesop and The Body Shop brands has been trying to simplify its structure and make its organizations "leaner" after years of expansion fueled by high-profile acquisitions. The brand is. 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. SAO PAULO, Nov 30 (Reuters) - Brazilian cosmetics maker Natura &Co NTCO3.SA is considering selling a minority stake in its Aesop brand, the company said on Wednesday, though noting the process was still in initial stages of consultation and no decision had yet been made. The acquisition is expected to complete in the third quarter of 2023. We will also be able to concentrate on continuing to improve The Body Shops business and refocusing Avon Internationals footprint., Nicolas Hieronimus, chief executive of LOral Groupe, added: I am very excited to welcome Aesop and its teams to the LOral Groupe family. Net revenues increased 21.5% at constant currency for the skin care brand during the period, with all regions bar Europe delivering double-digit growth. 2023 Fairchild Publishing, LLC. All material is subject to strictly enforced copyright terms & conditions and cannot be repurposed or reproduced. "We welcome efforts to simplify its structure amid the adverse scenario, but in terms of fundamentals, the short term should remain challenging," said analysts at BTG Pactual, "Neutral" rated on the firm. Corporate & Sovereign Strategy Equity M&A Brazil Australia Capital Markets. The cosmetics company said the restructure aims to increase the accountability of its Natura, Avon, The Body Shop and Aesop brands. Natura & Co have been working on restructuring its business model throughout 2022, in a bid to transition to a simpler holding company model. All quotes delayed a minimum of 15 minutes. The . As previously reported, the proposed transaction with the seller, Brazil's Natura & Co., values Aesop at more than $2.5 billion. These symbols will be available throughout the site during your session. IBOVESPA 2023 PERSPECTIVES: HOW WILL THE COMPANIES YEAR BE? But as for why beauty behemoths such as LVMH, LOral and Shiseido would like to get their mitts on the brand, Im convinced it shakes out to quality, authenticity and all the little quirks and idiosyncrasies that make the brand stand out in a sea of sameness. Roberto Marques, Natura & Cos Group CEO and Executive Chairman, stepped down from both positions in June. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. The sale was announced. With its signature amber packaging, plant-based ingredients, sustainable vegan formulations, and . Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV. All Rights Reserved. CITIGROUP INC 47.41 USD -0.20 -0.42% Brazilian cosmetics maker Natura &Co is assessing options to unlock value at its high-end brand Aesop as the company seeks to restore investor confidence. 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. And oddly, a Google search even turned up a selection of Aesop products at Walmart.com. SO PAULO, April 03, 2023 Natura &Co (NYSE - NTCO; B3 - NTCO3) announces that it has reached an agreement under which L'Oral will acquire Aesop, opening a new chapter of the luxury beauty brand's growth story after 10 successful years under Natura &Co's stewardship. 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. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. By Annabelle Liang Business reporter L'Oreal has agreed to buy Australian skincare brand Aesop in a deal worth $2.53bn (2bn), the French beauty giant's largest takeover in decades. Do Not Sell My Personal Information (CA Residents Only). Create your Watchlist to save your favorite quotes on Nasdaq.com. They see the market valuing Aesop at around 8 billion reais ($1.51 billion). I have worked for a global news website for the past two years, writing articles on a range of topics relating to the stock market. Fabio Barbosa told reporters Natura's financial leverage was "practically going down to zero" following the transaction, considering both debt repayments and the cash raised, but added it was time for "discipline". "Also, it can potentially position Natura back as a solid dividend play," JPMorgan said. Free-standing store counts put The Body Shop at a whopping 2,800 and Aesop at 247, according to the Natura & Co website. (During its heyday, the now defunct Gramercy Park Hotel in New York City is rumored to have blasted through 250,000 bottles of the stuff a year.) Analysts at Itau BBA said that an Aesop stake sale could be net positive for Natura &Co as it would deleverage the asset, align Aesop's management and potentially bring short-term price-to-earnings ratio to a "more palatable" level. Cosmetics maker Natura &Co is working with Bank of America Corp. and Morgan Stanley to sell a stake in its Aesop unit, according to people familiar to the matter. India's antitrust body is scrutinising Air India's planned merger with Vistara and has asked the company why it should not be investigated further over competition concerns, potentially delaying the process, two sources with direct knowledge said. Brazilian cosmetics maker Natura &Co is considering selling a minority stake in its Aesop brand, the company said on Wednesday, though noting the process was still in initial stages of . in June, handing over the reins of the company to board member Fabio Barbosa. This call may contain forward-looking statements. 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. Parent-company cash flow problems, apparently. Take a free two-week trial now for the latest news, data and market analysis. All rights reserved. Natura &Co posts constant currency sales growth and profitability SO PAULO, April 3, 2023 /PRNewswire/ -- Natura &Co (NYSE - NTCO; B3 - NTCO3) announces that it has reached an agreement under which L'Oral will acquire Aesop, opening a new chapter of the. L'Oral buys Aesop in $2.5 billion deal, its biggest acquisition ever The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 2023, Nasdaq, Inc. All Rights Reserved. We will also be able to concentrate on continuing to improve The Body Shop's business and refocusing Avon International's footprint. Of these three, which company will emerge triumphant, with a shiny new addition to its brand lineup? 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 Shops business. Report: Natura Works With Bank of America, Morgan Stanley on Stake Sale Aesop products are chock-a-block with star ingredients like parsley seed, tea tree leaf, primrose and chamomile; the 46-year-old brand was way ahead of the so-called clean curve. The movement to buy the shares comes after the news that the company may sell a slice of Aesop, one of its controlled brands. But never in a million years would I rule out the highly disciplined, quality-fixated Shiseido. My crystal ball is telling me to take LOral out of the equation, primarily because Aesop is, in my opinion, too closely ideologically aligned with Kiehls. It has since expanded to 27 markets around the globe, with each of its 247 signature stores having their own unique design. 2023 Benzinga.com. March 02, 2023 | by Dana Wood When a number of reputable business news outlets recently reported that none other than LVMH, L'Oral and Shiseido were allegedly embroiled in a $2 billion bidding war for the Australian beauty brand Aesop, I'll cop to being a bit surprised. Aesop sales have also remained buoyant throughout 2022, helping the brand owner offset a 20% slump in revenues from The Body Shop during its third quarter 2022 results. Shares in Natura &Co are down more than 50% so far this year. Aesop has been owned by Natura for the last ten years during which time its gross sales have increased from $28 million to $537 million. Natura & Co is a Brazilian global personal care cosmetics group headquartered in So Paulo currently including Natura Cosmticos, Aesop, The Body Shop and Avon. Natura confirms talks to sell Aesop | LatinFinance.com Under the transaction, L'Oral has signed an agreement to acquire Aesop for an enterprise value of US$ 2.525 bn. SO PAULO, April 3, 2023 /PRNewswire/ -- Natura &Co (NYSE - NTCO; B3 - NTCO3) announces that it has reached an agreement under which L'Oral will acquire Aesop, opening a new chapter of the. L'Oral Signs Agreement to Acquire Aesop - WWD He said the company was not considering further divestments or fresh acquisitions following the $2.53 billion deal, whose main goal was financially deleveraging Natura amid high interest rates. 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 &CoNatura &Co is a global, purpose-driven, multi-channel and multi-brand cosmetics group which includes Avon, Natura, The Body Shop and Aesop. For decades, its cult-favorite Resurrection Aromatique Hand Wash, a heady unisex blend of mandarin rind, rosemary leaf and cedar atlas, has had pride of place in umpteen trendy restaurants and luxe boutique hotels. Quroa Medium Discord Tumblr Pinterest, ALL RIGHTS RESERVED 2023 Global Happenings, Oil prices fall 2% on expectations of high interest rates in the main BCs, Uber (UBER) suspends motorcycle transport service in So Paulo, A Koran burned in front of a mosque in Sweden, People simply would not exist: a supernova almost completely destroyed the solar system, Summer exodus, red dot coming for three weekends, TradingView column: Bitcoin is still struggling to break the 31k. Founded in 1969, Natura is a Brazilian multinational in the cosmetics and personal care segment, leader in direct sales. A decision on any transactions will be taken by the companys board once the study is completed. That could then be followed by an IPO. Natura said the sale will free up resources for its strategic priorities. Aesop taps into all of today's ascending currents and L'Oral will contribute to unleash its massive growth potential, notably in China and Travel retail. Japanese beauty group Shiseido Co. is also studying a possible offer to buy the brand from Natura. Natura focused on 'disciplined allocation' after Aesop sale; shares Transcript of the conference call on Material Fact: Biding Agreement to But for sure, all three brands are omnichannel, with robust websites and distribution in a wide swathe of department and specialty stores. Copy and paste multiple symbols separated by spaces. LVMH, LOral, Natura and Shiseido declined to comment. Bloomberg reported earlier that French group LVMH, L'Oral, and Japan's Shiseido were among those interested in a transaction that would value Aesop at around $2 billion. When a number of reputable business news outlets recently reported that none other than LVMH, LOral and Shiseido were allegedly embroiled in a $2 billion bidding war for the Australian beauty brand Aesop, Ill cop to being a bit surprised. Cosmetics Business Picks: 8 new beauty launches to get ready for summer, Brazilian antitrust watchdog approves L'Orals acquisition of Aesop, Fable Investments increases stake in Perfumer H, Cosmetics Business Picks: 8 new launches to get ready for summer, Cosmetics Business Picks: 7 Mothers Day beauty launches, Natura's sales plummet 11% following The Body Shop job cuts, Aesop stake sale sparks $2 billion bidding war among LOral, LVMH and Shiseido, 6 beauty launches dropping just in time for the holiday season, Avon empowers 40+ women with Power in Ageing podcast, Aesop's new Regent Street store signals era of large format retail, A look inside Aesop's new academia-inspired Cambridge store, Beauty brands pledge to protect staff from Roe v Wade overturning, Natura & Co Group CEO Roberto Marques to exit, Aesop sales have also remained buoyant throughout 2022, Roberto Marques, stepped down from both roles.