The Body Shop has been snapped up by private equity investor Aurelius Group for £207m, just a fifth of the price that Brazilian cosmetics giant Natura paid for it in 2017.
The sale, which is expected to complete next month, is far below the £500m price tag that Natura was understood to be targetting.
After posting six consecutive quarters of losses, executives at Natura revealed in September that The Body Shop was weighing on the its bottom line as consumers had shifted spending following the pandemic.
Aurelius Group, which also owns Footasylum and Lloyds Pharmacy, beat out early competition from fellow private equity firms Elliott Advisors, and Alteri to buy The Body Shop.
It will work with the management team “to drive operational excellence across the beauty retailer, leveraging its expertise and experience in the omnichannel retail and wholesale markets”.
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It said: “This, combined with The Body Shop’s iconic brand and heritage in socially responsible products, means that despite the challenging retail market there is an opportunity to re-energise the business to enable it to take advantage of positive trends in the high-growth beauty market.”
The Body Shop CEO Ian Bickley said the sale was a “truly historic moment” for the health and beauty retailer and would allow it to “continue building the relevancy of this global brand for future generations”.
“With a presence in over 80 countries, The Body Shop is not only a beauty brand, but also an iconic social business that has captured hearts in nearly every corner of the world. “
“I’m looking forward to working hand in hand with Aurelius as we adapt and flourish in new global retail environments, always with an eye on sustainable and profitable growth.”
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