L’Oreal to Buy Skincare Brand Aesop in $2.5 Billion Deal (3)

French skincare giant L’Oréal SA has agreed to acquire luxury cosmetics brand Aesop, which was founded in Melbourne before developing a cult global following, for an enterprise value of $2.53 billion.

The transaction caps months of negotiations as other companies, including private equity firm Permira and Chinese investment firm Primavera Capital also showed interest in the Australian brand, owned by Brazil’s Natura & Co., people familiar with the matter told Bloomberg last month.

At L’Oreal, Aesop joins a cast of luxury brands such as Lancome and Yves Saint Laurent as the French company bets on a continued drift toward ...