Natura &Co to Sell The Body Shop to Aurelius

Natura &Co has reached an agreement to sell The Body Shop to international private equity group Aurelius, marking a new step in the Group's strategy to simplify and refocus its operations.

 

Under the transaction, Aurelius has signed an agreement to acquire The Body Shop for an enterprise value of GBP 207 million or $256.6 million, including an earn-out of GBP 90 million, or $111.6 million. The price and the earn-out will be payable in up to five years after closing. 

 

The closing of the transaction is expected to occur by Dec. 31, 2023, and is subject to customary regulatory approvals. 

 

With the transaction, Natura &Co, a HAPPI Top Company, will continue its drive to refocus on its strategic priorities, notably accelerating the integration of the Natura and Avon brands in Latin America, focusing on its core relationship selling model, and further optimizing Avon International's footprint. 

 

The Body Shop will benefit from Aurelius' strong track record in building up companies to continue its transformation journey. Aurelius, a globally active investment firm, has experience in the retail sector through its investments in Footasylum, an omni-channel retailer of fashion streetwear and sportswear based in the UK as well as global catering group LSG Sky Chefs. 

 

Aurelius says it seeks to enhance ESG aspects in its portfolio companies and is committed to maintaining The Body Shop's long-standing, distinctive values, instilled by its founder, Dame Anita Roddick.

Under Natura &Co's ownership since 2017, The Body Shop has undergone an overhaul of its product portfolio and a rejuvenation of the brand, notably through a more contemporary redesign of its stores, with the Changemaking Workshop that enhanced stores and customer experience worldwide, and of its refill program, now in place in nearly 800 stores. The Body Shop also became a certified B Corp in 2019, broadening its sustainability commitments and regaining its advocacy voice.

 

Said Fabio Barbosa, Natura &Co CEO, “With the sale of The Body Shop, we are taking another important step in Natura &Co's new development cycle to unlock significant value. Refocused, deleveraged and leaner, Natura &Co will now be able to fully concentrate on its core relationship selling expertise in Latin America while also continuing the optimization of Avon International's footprint and investing in initiatives and innovations that positively impact people and the planet. We are pleased to have found a strong home for The Body Shop to write the next chapter in its remarkable story, and we extend our sincerest thanks to all The Body Shop's associates, who contributed immensely to broadening Natura &Co's horizons. We wish them continued success under the stewardship of Aurelius.”