Australia’s luxury personal care brand, Aesop has been bought by L’Oreal in a deal that values the Greek-Australian founded company at $US2.53 billion ($3.7 billion), including debt.
Melbourne hairdresser Dennis Paphitis founded Aesop in 1987 collaborating with a Los Angeles chemist, to create sustainable, ethical and high-quality, non-toxic haircare products using essential oils, before moving on to skin and body products.
The first physical Aesop store opened in Melbourne’s St Kilda in 2004.
Paphitis sold his majority stake in Aesop in 2012 to Brazilian skincare and beauty giant Natura Cosméticos in a deal that was reported to then be worth $68 million. Paphitis had retained a 25 per cent stake in the company which he sold in full more than five years ago.
A representative for entrepreneur said that Paphitis did not receive anything from the latest sale of the company he started.
Aesop has evolved into a global super brand available across luxury retail, beauty, and hotels and restaurants operating over 400 points of sale across the Australiasia, US, Europe and China.
Undeniably, Greek-Cypriot Paphitis has been ahead of his time, opting for developing the highest quality plant-based product with a minimalist approach on packaging.
This is the largest deal any luxury brand in Australia, has closed, according to the Australian Financial Review.
“Aesop taps into all of today’s ascending currents and L’Oreal will contribute to unleash its massive growth potential, notably in China and travel retail,” L’Oreal chief executive Nicolas Hieronimus said in a statement, adding that “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”.
