Parent company Natura & Co. announced on Tuesday that it has reached an agreement to sell The Body Shop to private equity group Aurelius.
The beauty company will be sold for 207 million pounds (around $257 million as of press time), with an earn-out of 90 million pounds. The price and the earn-out will be payable in up to five years after closing, which is expected to occur by Dec. 31. The deal is subject to customary regulatory approvals.
Natura & Co.’s board authorized its management to explore strategic alternatives for The Body Shop in August, amid declining sales. In October, the company entered into an exclusivity agreement with Aurelius to acquire the business. The Brazilian cosmetics conglomerate operates its namesake brand and Avon.
"With the sale of The Body Shop, we are taking another important step in Natura & Co.'s new development cycle to unlock significant value,” Fabio Barbosa, chief executive officer of Natura & Co., said in a statement. “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.”
Ian Bickley, CEO of The Body Shop, called the acquisition of the company a “historic moment,” and said the deal will allow the retailer to continue to build its global brand.
Natura & Co. acquired The Body Shop from L’Oréal in 2017. The Body Shop deal is the second sale for the conglomerate this year. Natura & Co. entered into an agreement to sell Aesop to L’Oréal in April for $2.5 billion.