Following challenges with profitability, a beauty retailer with 250 high-street stores has agreed to a £207 million deal to sell its assets. The Body Shop is set to be acquired by a private equity group, as the owner, Natura & Co, reached an agreement with Aurelius Group. The Brazilian cosmetics maker anticipates finalizing the sale by December 31. The potential impact of store closures or staff redundancies remains uncertain at this time.
In August, Natura announced that its board of directors had authorized the exploration of "strategic alternatives" for The Body Shop, including a potential sale, six years after acquiring it from L'Oreal. Exclusive talks with Aurelius commenced last month.
Aurelius, the private equity buyer, indicated its intent to "re-energize" the retailer.
Mr. Bickley, the chief executive of The Body Shop, reiterated, "The Body Shop is not just a beauty brand; it is also an iconic social business that has resonated with people in almost every corner of the globe. We extend our deep gratitude to Natura & Co for their steadfast support, and I eagerly anticipate collaborating with Aurelius as we navigate and thrive in new global retail landscapes, always with a commitment to sustainable and profitable growth."(Daily Mail)
Established in 1976 by Anita Roddick in Brighton, The Body Shop has expanded to employ approximately 7,000 staff and operates 900 stores across 20 countries. Additionally, it boasts around 1,600 franchised shops worldwide.
During the third quarter, Natura & Co rebounded with a net profit of approximately £1.15 billion, a significant turnaround from a £450 million real loss the previous year, largely propelled by the sale of Aesop. Excluding this divestiture, Natura indicated that the third-quarter net profit would have been around £123 million.
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