The Brazilian group has reached an agreement to sell iconic global beauty The Body Shop to private equity group Aurelius for GBP 207 million, just a fifth of the price Natura paid for it to L’Oréal in 2017 (EUR 1 billion).

The closing of the transaction is expected to occur by December 31, 2023, and is subject to customary regulatory approvals.

With the sale of The Body Shop, the Natura &Co group is making a new step in the its drive to simplify and refocus on its strategic priorities, notably accelerating the integration of the Natura and Avon brands in Latin America, focusing on its core relationship selling model, and further optimizing Avon International’s footprint.

Under Natura &Co’s ownership since 2017, The Body Shop has undergone an overhaul of its product portfolio and a rejuvenation of the brand, notably through a more contemporary redesign of its stores. However, Natura & Co has been struggling for years to improve the brand’s performance.

"With the sale of The Body Shop, we are taking another important step in Natura &Co’s new development cycle to unlock significant value. 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," said Fabio Barbosa, Chief Executive Officer of Natura &Co.

The Body Shop, which is headquartered in London, has operations in 89 markets with over 900 company-owned stores in 20 countries and partnerships with head franchisees who operate approximately 1,600 franchised stores in a further 69 geographies.

Tristan Nagler, Partner at Aurelius, aid the fund wants to drive operational improvements and re-energise The Body Shop. Aurelius already has experience in the retail sector through its investments in Footasylum, an omni-channel retailer of fashion streetwear and sportswear based in the UK as well as global catering group LSG Sky Chefs.

Aurelius group has been growing significantly in recent years and now has EUR 11 billion in revenues.