Brazil direct sales cosmetics player Natura has acquired a controlling stake in the Australian personal care AESOP, a deal which also includes the company’s distributor.
Natura confirmed that it paid AUD $68m for the 65 percent stake in the business in a cash transaction that is a definitive agreement expected to give the company a crucial footing in that market.
The two companies have similar profiles and target customers, which was one of the main driving forces behind the deal.
Aesop and Natura share core values
Aesop was established in 1987 and produces a range of higher-end skin, hair and body care products that use plant-based and laboratory-produced ingredients distributed in 60 retails location in 11 countries and this year will have an expected turnover of AUD$64m.
Like Natura, it markets its products on the basis of quality, efficacy and the fact that the range follows the big trend for natural based cosmetics.
Fuelling Natura’s international growth, the newly acquired business will continue to be headed up by current CEO Michael O’Keeffe and will also remain headquartered in Melbourne.
Maintaining seperate business units
Likewise, Aesop’s founder, Dennis Paphitis, will remain as an advisor to the business, following the transaction, which the companies anticipate will be finalized within the course of the next few months.
Although the companies will continue to act as independent businesses, both companies will now share core competencies and regional expertise, with the aim of facilitating Aesop’s entry into the Brazil market Natura’s entry into signature stores in select markets.
“We have great respect for Aesop and are delighted to be partnering with an such an innovative organization that shares our values, vision and commitment to using the highest-quality botanical ingredients,” Alessandro Carlucci, Chief Executive Officer of Natura, said.
“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.”