L'Oreal plans to buy luxury skincare brand Aesop — known for its $90 serums and $40 hand wash that wealthy millennials can't get enough of — in a $2.5 billion deal

• French cosmetics giant L'Oreal plans to buy Aesop for $2.5 billion.
• Aesop is an Australian skincare brand, known for its simple marketing and gender-neutral products.

French cosmetics giant L'Oreal plans to acquire luxury skincare brand, Aesop, for $2.5 billion.

In a statement announcing the news on Monday, Aesop owner Natura &Co said it expects the deal to close in the third quarter of 2023. L'Oreal's CEO, Nicolas Hieronimus, described Aesop as the "epitome of avant-garde beauty."

Its "products are not only made with great care and exceptional attention to detail; they are a superb combination of urbanity, hedonism, and undeniable luxury," he said.

Aesop is an Australian brand that dates back to 1987 when founder Dennis Paphitis opened a Melbourne hair salon and began mixing essential oils into hair products. Today, it's known for luxurious home fragrances, hair oils, and skincare products, which are served up in apothecary-style brown bottles. Cleansers, face oils, and toners cost anywhere between $35 to $100. Its products are designed to be gender-neutral, cruelty-free, and vegan.

Brazilian cosmetics group Natura &Co bought a 65% stake in Aesop in 2012 and four years later, fully acquired the company. In the decade that followed, Aesop has grown rapidly, opening stores across the world, and seeing its gross sales increase from $28 million to $537 million. It has become an aspirational brand for wealthy millennials who are happy to spend $40 on its hand wash to make their bathrooms look more upmarket.

The brand aesthetic is simple and stylish, encapsulated by its spa-like, serene stores.

Hieronimus said L'Oreal would help unleash Aesop's large growth potential in travel retail and expand its presence in China.