Natura &Co (NTCO), the Brazilian-based cosmetics conglomerate, sold its subsidiary, The Body Shop, to the private equity enterprise Aurelius Group for £207m. The company announced that it signed a binding agreement to this effect on Tuesday, and the deal should be finalised by next month.
Natura enters into agreement with Aurelius Group to sell the Body Shop
Reportedly, this is yet another attempt to keep the battling beauty retailer afloat. In April, Natura sold Aesop, another one of its subsidiaries, to L’Oreal (OR.PA) for just over $2.5bn. In its press release, the company stated:
With the transaction, Natura &Co will strengthen and deleverage its balance sheet, freeing up resources to focus on its strategic priorities, notably the integration in Latin America, as well as the further optimisation of Avon International’s footprint and the improvement of The Body Shop´s business.
According to reports, the agreement with Aurelius includes a potential earn-out of £90m. Natura added that the sale price and earn-out would be paid within five years after the finalisation of The Body Shop agreement.
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Founded in 1976, The Body Shop is a UK brand with its roots in Brighton, southern England. The line is known for being cruelty-free as it does not test any of its products on animals.
Natura &Co acquired The Body Shop in 2017. The brand employs roughly 7,000 people across 89 markets.
Aurelius types itself as a funding company when it comes to complex deals. This group previously acquired Footasylum from JD Sports Fashion Plc (JD.L) and the LSG Group from Deutsche Lufthansa AG (LHA.DE). According to Reuters, Natura’s chief executive officer, Fabio Barbosa, said the sale of The Body Shop was:
… another important step in Natura &Co’s new development cycle to unlock significant value.
