Natura & Co Holding S.A has reached a deal to sell The Body Shop to private equity firm Aurelius Group for £207 million, including a potential £90 million earn-out over the next five years. The transaction, announced today, is a strategic move by Natura &Co to refine its business structure and concentrate on its core brands in Latin America.
The sale of The Body Shop is designed to simplify Natura & Co's operations, creating a more streamlined corporate architecture. This divestiture allows the company to focus on the integration of the Natura and Avon brands within the Latin American market, where they plan to enhance their principal relationship selling model. Additionally, Natura &Co aims to further optimize Avon International's footprint.
Fabio Barbosa, CEO of Natura &Co, stated that this divestment is key to unlocking significant value internally for the company. He stressed that the decision aligns with their strategic priorities and will contribute to the company's growth trajectory. The deal with Aurelius is expected to be finalized by December 31.
On the other side of the agreement, Aurelius Group celebrates a new era for The Body Shop. With this acquisition, Aurelius aims to capitalize on the beauty brand's global presence in over 80 countries. Ian Bickley, CEO of The Body Shop under Aurelius Group's ownership, acknowledged the historic nature of this transition and expressed gratitude towards Natura &Co for their stewardship.
Bickley also conveyed his excitement about leading The Body Shop into its next phase of development. He emphasized the brand's resilience in evolving retail landscapes and its commitment to sustainable and ethical growth. Underlining The Body Shop's dual identity as both a beauty brand and a social business, Bickley is confident in driving profitability while upholding the company's social mission.
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